How does the supply of money impact the economy


In reference to "monetary policy,"

Question 1. Please describe the monetary system of the United States including how it is flexible in relation to economic conditions, and how the US Federal Reserve System changes the supply of money.

Question 2. How does the supply of money impact the economy?

These are topics that are touched on in my two textbooks, but the text material on monetary policy is not easily identified under any particular heading in either of the texts. (One of my textbooks is required for my macroeconomics class, and the other was one that I picked up on for additional information).

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Microeconomics: How does the supply of money impact the economy
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