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“The Federal Reserve and Monetary Policy”
Visit the Federal Reserve website and answer the following questions in your own words.
- What is the mission and legal mandate of the Federal Reserve System (FED)?
- What policy tools are available to the FED to achieve its mission?
- What are the FED’s inflation and full-employment targets?
- When the economy is struggling with high unemployment, should the FED undertake expansionary or contractionary monetary policy ?
- What tools would they use to accomplish this?
- How will the monetary policy you recommended above impact the interest rate, inflation rate, aggregate demand, and real GDP.