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(Monetary Policy Tools) Please answer the following questions. You must explain the reasoning of your answer Please discuss the monetary policy tools used by Federal

(Monetary Policy Tools)

  1. Please answer the following questions. You must explain the reasoning of your answer
  2. Please discuss the monetary policy tools used by Federal Reserve Bank.
  3. What is an expansionary monetary policy and what is a contractionary monetary policy?
  4. If the FED believes that the economy is headed to recession, what actions should it take and why? You have to explain the reasoning of your answer by giving daily life examples and provide graphical illustrations if necessary.
  5. If the FED believes that the inflation rate is about the sharply increase, what action should it take and why? You have to explain the reasoning of your answer by giving daily life examples and provide graphical illustrations if necessary.

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