To receive full credit, you must show the (a) correct graphical analysis on the axes provided, and (b) then restate how you perceive the market
September 3, 2020
Questions below 150 words minimum with references.The change in money supply affects the economic agents. Suppose the Federal Reserve increases the money supply to boost aggregate demand during recess
September 3, 2020

The questions are below.  150 words minimum with references.

The Federal Reserve may increase or decrease money supply depending on the economic condition.

  1. What policy instruments does the Fed use for the monetary policy?
  2. What are the pros and cons of using expansionary and contractionary monetary policy tools under the following scenarios: depression, recession, inflation, and robust economic growth? Which do you think is more appropriate today?
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