Discuss the below:
1. Monetary Policy and Inflation
From this week's e-Activity, examine two methods that the Federal Reserve can implement to support a stronger economic recovery. Provide support for each method in your response.
Identify one way that the Federal Reserve's actions have influenced a recent decision that you have had to make. Explain the basis for your decision.
2."Money"
Given our current economic situation, determine the steps that the Federal Reserve should take to help stabilize our economy.
Explain how each of the following variables will be affected by proposed steps that you have identified in the first part of the discussion: money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your response.