Define the term monetary policy, and describe three ways the Fed implements monetary policy.
What will be an ideal response?
Monetary policy is based on manipulation of the amount of money in circulation. Monetarists believe in tightening or loosening the money supply as a way of slowing or invigorating the economy. Economist Milton Friedman was a proponent of monetarism. Control of the money supply rests with the Federal Reserve System, or the Fed for short. The Fed can influence monetary policy by lowering or raising the interest charged when member banks borrow money from their regional Federal Reserve bank, by raising or lowering the percentage of money members banks must hold in reserve, and by buying selling of government securities.
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The Bipartisan Campaign Reform Act of 2002:
A. eliminated public financing for presidential primaries and general elections. B. set the amount that an individual could contribute to a federal candidate at $8,000. C. prohibited special interest groups from making independent expenditures in election campaigns. D. banned soft money at the national level and regulated campaign ads paid for by interest groups. E. allowed issue-advocacy commercials within thirty days of a primary election.
How is an official declaration of war made?
a. The president unilaterally declares war. b. The president proposes and the Congress approves by a simple majority a declaration of war. c. Congress declares war without presidential consultation. d. A two-thirds majority of the Senate most approve a declaration of war.