The Federal Reserve controls the money supply through monetary policy actions.

In your initial post address the following:

• How do changes to the federal funds rate affect the unemployment rate? Explain by using information from the textbook.
• How do changes to the federal funds rate affect the inflation rate? Explain the relationship using information from the textbook.

This video willould help to explain the Monetary Policy and the Fed- EconMovies #9: Despicable MeMonetary Policy and the Fed: EconMovies #9: Despicable Me.