Explain when the FED would use a contractionary monetary policy and an expansionary monetary policy, and what the overall result would/could be.

Expansionary monetary policiesOpen market operations; this refer to the practice of  buying and selling on the open market in order to manage the amount of money available in banks.Interest rates;...

Contractionary PolicyContractionary fiscal policy happens when the government and its public agencies lowers its expenditures, while also decreasing spending or increasing taxes at the same time. When a government reduces its...

- The Bank of Canada may increase the Central Bank's discount rate in order to increase the cost of loans for business and the public. - The Bank of...

1) Open Market OperationsThis is seen clear when central banks buy or sell securities. They are either bought from or sold to the country's private banks. When the central bank buys securities, it adds...

CPI and GDP deflator are the commonly used price indices in measuring inflation. The rise in CPI and GDP deflator by 3% in the past six months is an indication...

(c) Expansionary fiscal policy

Tight monetary policy reduces the quantity of money and credit below what it otherwise would have been and raises nominal interest rates.

An expansionary fiscal policy might include increase in government spending and/or reduced taxes while a contractionary fiscal policy might include decrease in government spending and/or increased taxes.

(1) Expansionary fiscal policy

If the President and Congress would use a contractionary fiscal policy and an expansionary fiscal policy, then it couldn't be effective, because these policies are opposite to each other and...