You have just completed your seven-year term as the chief economic policy advisor responsible for managing the economy of a nation. You are expected to develop a report for the incoming administration. In this outgoing report, you will summarize your macroeconomic policy decisions and the economic outcomes for the nation.

Monetary Policy

Explain how you would change the interest rate levels and how these changes could impact other macroeconomic factors such as inflation, consumption, investments, GDP, and foreign trade. Provide specific examples to help illustrate.

Compare and contrast the impact of the monetary policies you would make with those of current or historical examples in the United States. What do these examples demonstrate about the validity of macroeconomic models?