Explain how do these tools influence the money supply

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GDP, unemployment, inflation, and interest rates

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

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

C)Explain how money is created.

D)Which combinations of monetary policy help you to best achieve a balance between economic growth, low inflation, and a reasonable rate of unemployment?

Ideally, the help you provide will grow my understanding of these concepts and will help me more effectively discuss monetary policy and its effects on macroeconomic factors such as GDP, unemployment, inflation, and interest rates.

 

Reference no: EM1329970

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