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Central Banking

&

Monetary Policy

Chapter 26

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A Birds-Eye View of How Monetary

Policy Affects Output and Inflation

Chapter 26

Figure 26-1

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The Major Players in Monetary

Policy

Chapter 26

Figure 26-2

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While the Fed Ultimately Pursues Objectives like Stable

Prices, Its Short-Term Operations Focus on the

Intermediate Targets

Chapter 26

Figure 26-3

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Federal Reserve Determines

Federal Funds Rate

Chapter 26

Figure 26-4

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The Money Market

Chapter 26

Figure 26-5

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Changes in Monetary Policy or

Prices Affect Interest Rates

Chapter 26

Figure 26-6

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Central Bank determines the Money Supply,

Changing Interest Rates and Investment, Thereby

Affecting GDP

Chapter 26

Figure 26-7

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An Expansionary Monetary Policy Shifts AD

Curve to the Right, Raising Output and

Prices

Chapter 26

Figure 26-8

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Chapter 26

Table 26-1

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Chapter 26

Table 26-2a

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Chapter 26

Table 26-2b

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Chapter 26

Table 26-3