You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon Wireless, AT&T, and T-Mobile.

• Define the goals and objectives of the Federal Reserve.
• Identify the four monetary policy tools used by the United States and explain which monetary policy tool would influence the sale of smartphones in the U.S.
• Discuss the difference between expansionary monetary policy and contractionary monetary policy.
• Explain how expansionary monetary policy would lead to an increase in the sale of smartphones.
• Explain the difference between the M1 and M2 money supply.
• Identify whether an increase in the M1 or M2 money supply would lead to an increase in the sale of smartphones.
• Explain how higher interest rates and inflation would affect the sale of smartphones in the United States.
• Describe the two fiscal policy tools used by the federal government.
• Discuss the difference between expansionary fiscal policy and contractionary policy.
• Which fiscal policy tool has the greatest influence over the sale of smartphones in the United States and why?