How do changes to federal funds rate affect inflation rate

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Discussion Post: Federal Reserve Monetary Policy Actions

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.

Watch The YouTube video "EconMovies #9: Despicable Me" help to explain the Monetary Policy and the Fed- EconMovies #9: Despicable MeMonetary Policy and the Fed.

Reference no: EM133743106

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