Solved: Changes federal reserve can make to adjust tools, Macroeconomics

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Changes federal reserve can make to adjust tools

Question 1. Describe three ways in which the Federal Reserve can change the money supply.

Question 2. If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make?

Question 3. If the Federal Reserve is going to adjust all of these tools during an economic recession, what changes would they make?

Question 4. What changes, if any, to the current condition of these tools would you make at the next meeting of the Federal Reserve? Explain why and the benefits/drawbacks of this strategy.

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Macroeconomics: Changes federal reserve can make to adjust tools

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