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The Federal Reserve and You, Version 2.0

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Chapter 4: Monetary Policy

In this chapter, learn more about the Federal Reserve’s monetary policy. Find out how changes in the money supply can affect interest rates and, in turn, affect economic growth and the price level. Learn more about the importance of price stability and the Federal Reserve’s goals of monetary policy. Explore four of the Federal Reserve’s monetary policy tools — open market operations, the discount rate, reserve requirements, and interest on reserves.

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