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Discussion: Monetary System
The Federal Reserve controls the money supply through monetary policy actions.
In your initial post address the following:
1. How do changes to the federal funds rate affect the unemployment rate? Explain by using information from the textbook.
2. How do changes to the federal funds rate affect the inflation rate? Explain the relationship using information from the textbook.
This document contains various important questions and their appropriate answers in the subject field of Economics.
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