Discussion Post: Monetary System
The Federal Reserve controls the money supply through monetary policy actions.
In your initial post address the following:
a) How do changes to the federal funds rate affect the unemployment rate? Explain by using information from the textbook.
b) How do changes to the federal funds rate affect the inflation rate? Explain the relationship using information from the textbook.
This YouTube video will help to explain the Monetary Policy and the Fed: "Monetary Policy and the Fed- EconMovies #9: Despicable Me".
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.