Describe the transmission process of monetary policy

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Reference no: EM13995747

Create two separate graphs that show current changes in equilibrium interest rates using the MD and MS curves. Describe the following:

The Fed's actions to fight recession

The Fed's actions to lower inflation

Create two NEW graphs adding AD/AS curves to each of the graphs you created in Step 1.

Answer these two questions from the graphs you created in steps one and two.

Describe the transmission process of monetary policy.

How do the Fed's actions to fight recession and lower inflation differ? How are they similar?

Reference no: EM13995747

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