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What kind of monetary policy does the Fed need to use to bring the economy out of the recession? Explain how each of the three
What kind of monetary policy does the Fed need to use to bring the economy out of the recession?
Explain how each of the three monetary policy tools can be used for the Fed's chosen monetary policy.
Explain how the Fed's chosen monetary policy affects the interest rate. Draw the demand for money curve and the money supply curve in one graph and show the change in the interest rate.
Explain how the new interest rate affects the three major macroeconomic indicators.
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