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By law the Federal Reserve is required to monitor unemployment and inflation. Respond to the following components: How does the Federal Reserve accomplish these goals?

By law the Federal Reserve is required to monitor unemployment and inflation. Respond to the following components:

  • How does the Federal Reserve accomplish these goals?
  • What are the pros and cons of using contractionary and expansionary monetary policy tools under the following scenarios: recession or depression and robust economic growth?
  • What tool is the most appropriate among the different monetary policy tools available today?

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