1. What is the primary component(s) of GDP the FED is trying to affect with Monetary Policy?

2. If the FED wants to stimulate the economy or, "put on the gas", does it want interest rates to increase or decrease? Why? When gas is applied, where on the business cycle is the economy most likely to be?

3. When expansionary monetary policy is appropriate, how would the FED use the three tools? BE SPECIFIC, how would each tool be used? If the gas is required what phase of the business cycle is the economy in?