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2. (15 pt.) Identify at least three policies taken by the Federal Reserve Bank (FED) has taken to stabilize financial markets since mid-March. Explain why
2. (15 pt.) Identify at least three policies taken by the Federal Reserve Bank (FED) has taken to stabilize financial markets since mid-March. Explain why these policies considered, extraordinary, unprecedented and massive? What is the goal of these policies? Analyze the impact of the FED's "expansionary" monetary policy on U.S. business investment, household consumption, private savings, economic growth rate, unemployment rate, and the inflation rate, in the context of our basic macroeconomic model? Explain your reasoning carefully and show your result in a well-labeled aggregate demand - aggregate supply diagram. https://www.bls.gov/news.release/pdf/empsit.pdf
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