Reference no: EM1358453

Describe three ways in which the Federal Reserve can change the money supply.

If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make?

If the Federal Reserve is going to adjust all of these tools during an economic recession, what changes would they make?
What changes, if any, to the current condition of these tools would you make at the next meeting of the Federal Reserve? Explain why and the benefits/drawbacks of this strategy.

Objective: Identify current trends in macro and microeconomics.
Analyze the relationship between fiscal and monetary policy in an open economy.
Critically analyze the role of government in a market economy.
Use effective communication techniques.

There are three tools. See chapter 14. Use the link to the FED; the link is posted to Questions Asked and Answers Shared for Unit 5 Describe each tool and how it is used to achieve it desired effect on the US money supply State how the FED will use each tool to achieve the desired effect on the US money supply in Part 2 State how the FED will use each tool to achieve the desired effect on the US money supply in Part 3 In part 4 comments on the current FED policy; make any suggestions that you believe should be considered by the FED. Before you submit the assignment, look for each of the tools in part 2 and in part 3. If you do not read each tool in part 2 and in pat 3, the assignment is incomplete.