Review the article Federal Reserve and answer the following:

What are the three major tools the Federal Reserve uses to affect interest rates and aggregate demand in the economy? Explain each major tool.

Which tool dominates the Federal Reserve's monetary policy today? How effective is this tool relative to desired outcomes in the economy?

Are today's monetary policies in sync with the Federal Government's fiscal policies? Why or why not?

How do the Federal Reserve's interest rates affect you and your family? Explain.