Please explain each in details(at least 100 words)
1. At times, the Federal Reserve tries to change inflationary expectations. Why would the Fed want to raise inflationary expectations? How would this strategy of raising inflationary expectations affect consumption and investment? Be sure to tie your answer back to the two-period consumption model and the uc/MPKf model.
2. In the United States, what are the two monetary aggregates called? What types of assets are included in each? Who compiles and reports these monetary aggregates? How often?
3. Define what a stock is and what a bond is. How do they differ in liquidity and risk? Why are stocks and bonds important in an economy? How do they relate directly to the asset market