1. Evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy.
2. Determine which economic indicators the Federal Reserve should analyze so it can better stabilize this particular economy.
3. Describe which monetary policies the Federal Reserve might use to influence the money supply.
4.
Explain the strengths and weaknesses of using monetary policy in
comparison to fiscal policy when promoting economic activity and
preserving price stability.
5. Analyze the effect of the Federal Reserve’s action you identified in #3 on the aggregate demand / supply model.
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