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Topic: Business
Number of pages / Number of words: 7 / 1957
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And, compared with reserve requirement changes, open-market operations work subtly and less directly (McConnell & Brue, 2004). These tools used by the Federal government can directly influence the money supply and macroeconomic factors.

Money supply can be defined as he amount of money in the economy, measured according to varying methods or principles...


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One such method incorporates only money that is usually used to purchase goods and services, such as cash and the contents of checking account (Answers.com, 2007). Having knowledge about money supply and the tools used by the Federal government will provide a clear understanding of how it can influence macroeconomic factors...


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