Discuss monetary policy and its effect on inflation

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Paper - Macroeconomic Impact on Business Operations

In a 1400-2100 word APA-formatted analysis, discuss monetary policy and its effect on macroeconomic factors such as GDP, unemployment, inflation, and interest rates.

a) Explain how money is created?

b) What are the tools used by Federal Reserve to control the money supply?

c) How do these tools influence the money supply and in turn affect the macroeconomic factors?

d) Which combination of monetary policy helps you to best achieve a balance between economic growth, low inflation and a reasonable rate of unemployment?

Reference no: EM132266504

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