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  • 15.5: Monetary Policy and Economic Outcomes
    https://socialsci.libretexts.org/Bookshelves/Economics/Principles_of_Macroeconomics_3e_(OpenStax)/15%3A_Monetary_Policy_and_Bank_Regulation/15.05%3A_Monetary_Policy_and_Economic_Outcomes
    Figure 15.7 Monetary Policy and Interest Rates The original equilibrium occurs at E 0 . An expansionary monetary policy will shift the supply of loanable funds to the right from the original supply cu...Figure 15.7 Monetary Policy and Interest Rates The original equilibrium occurs at E 0 . An expansionary monetary policy will shift the supply of loanable funds to the right from the original supply curve (S 0 ) to the new supply curve (S 1 ) and to a new equilibrium of E 1 , reducing the interest rate from 8% to 6%. A contractionary monetary policy will shift the supply of loanable funds to the left from the original supply curve (S 0 ) to the new supply (S 2 ), and raise the interest rate from…
  • 28.2: Monetary Policy Tools
    https://socialsci.libretexts.org/Bookshelves/Economics/Economics_(Boundless)/28%3A_Monetary_Policy/28.2%3A_Monetary_Policy_Tools
    The reserve ratio is the percentage of deposits that a bank is required to hold in reserves, or funds that are not allowed to be loaned.
  • 27.2: Introducing the Federal Reserve
    https://socialsci.libretexts.org/Bookshelves/Economics/Economics_(Boundless)/27%3A_The_Monetary_System/27.2%3A_Introducing_the_Federal_Reserve
    Monetary policy is the process by which a monetary authority controls the money supply, often to produce stable prices and low unemployment.

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