1.Explain the main factors that contributed to the United States financial crisis of 2007 and 2008. Explain the policy response to the financial crisis by the U.S. Federal Reserve.

2.Discuss how the Federal Reserve might fight inflation in the United States. In your discussion, indicate the monetary policy tools to be used, how each tool will be used, and how the Fed's actions (utilized tools) might affect specific key economic factors to achieve its ultimate goals. Graphically illustrate your analysis with the money market, investment demand, and aggregate demand and aggregate supply frameworks.