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.
Question 5: State the three ways in which the Federal Reserve can change the money supply and explain clearly how each approach is expected to work in changing money supply.
a. Tool 1 and how it works in affecting money supply.
b. Tool 2 and how it works in affecting money supply.
c. Tool 3 and how it works in affecting money supply.
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Tool
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2.Proposed change by Fed when economy growing too quickly
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3. Proposed change by Fed in economic recession
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Question 6: What is the current condition of these tools (in our present day economy (cite sources of information)?
Question 7: What changes, if any, would you make at the next meeting of the Federal Reserve?
Question 8: Explain why you would make the changes (or not make any) as stated in 4B and the benefits/drawbacks of this strategy.