Expansionary or contractionary monetary policy

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Question: Imagine you are a Federal Reserve economist. You are preparing a memo on policy suggestions for the president of your Reserve Bank, who will help decide the direction of future monetary policy. After examining the "Current State of the Economy," make a policy recommendation:

Should the FOMC pursue expansionary or contractionary monetary policy? Make sure you provide reasons for your advice.

Identify the four monetary policy tools and how they could be used to follow the policy recommendation. Specifically, describe how the use of the tools will influence the federal funds rate, interest rates in general, and economic activity.

Conclude by explaining how the policy will help fulfill the Fed's dual mandate. Please write a page or page and a half with your response.

Attachment:- Macroeconomics Project Phase.rar

Reference no: EM133414588

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