http://www.federalreserve.gov/ Based on the above summary and the detailed descriptions of the issues in the textbook (Cchapter 33 ) discuss any of the following set of questions : 1. What are the expansionary monetary policy and contractionary monetary policy ? What are their policy instruments ? How are they used to deal with the inflationary gap and recessionary gap ? 2. Do you think monetary policy or fiscal policy is likely to be the more effective tool of stabilization policy ? Why ? 3. If the Fed wants to increase aggregate demand , it can increase the money supply . If it does this , what happens to the interest rate and rate of inflation ? Why might the Fed choose not to respond in this way ? 4. Should monetary policy be made by rule rather than by discretion ? Why