Assume the United States is operating below full employment.

1. Identify one monetary policy tool that will solve the problem.
2. Using a correctly drawn and labeled AD/AS graph and money market graph, show and explain how the policy you identified in (a) will affect each of the following in the short-run

:output and employment

price level

1. interest rates
2. Explain how the policy you identified in (a) will affect each of the following
3. :International value of the dollar
4. American exports (based on the changing value of the dollar)