Read the articles and answer the questions.

• How does monetary policy affect the U.S. economy?

https://www.frbsf.org/education/teacher-resources/us-monetary-policy-introduction/real-interest-rates-economy/

• Understanding the Role of Monetary Policy in the Economy byChristine Smith, (Tuesday, March 31, 2020)

https://www.stlouisfed.org/open-vault/2020/march/understanding-role-monetary-policy-economy

• Monetary Policy: Stabilizing Prices and OutputbyKoshy Mathai

https://www.imf.org/external/pubs/ft/fandd/basics/monpol.htm

In your initial response to the topic you have to answerallquestions:

1. Discuss the effect of monetary policy on inflation. To what extent can monetary policy influence inflation?
2. How can adjusting interest rates make an impact on economy?
3. Discuss the effect of interest rates on employment in the short run and in the long run.
4. Describe the mechanism how changes in monetary policy affect output and prices in the economy.
5. Reflection - the students also should include a paragraphin the initial responsein their own words, using macroeconomic terminology,reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life.