Explain how does the federal reserve accomplish

Reference no: EM1329537

Adopting a contractionary policy

1) By law the Federal Reserve is required to pay attention to both unemployment and inflation. How does the Federal Reserve accomplish these goals?

2) What are the pros and cons of using contractionary and expansionary monetary policy tools under the following scenarios: depression, recession, and robust economic growth?

3) What is more appropriate of the tools today?

Please provide references to help with my understanding of these questions.

Reference no: EM1329537

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