In our model of the economy, we used the money market, investment demand (curve) & AS/AD diagrams to illustrate an example of the conducting of monetary policy. Briefly describe the conducting of the type of monetary policy the Fed would conduct based on your above answer:

In the money market, the Fed would____the money supply; this will_____ interest rates which will_______the quantity of investment demanded. This would cause the______ curve to_______which would_______equilibrium output prices & real GDP.

also, Name & describe the three (traditional) tools of monetary policy.