Problem
a. What is the most important thing the Fed can do to promote economic stability?
b. Can expansionary monetary policy reduce interest rates and stimulate a higher growth rate of real output in the long run?
c. If monetary policy is too expansionary, how will nominal interest rates and the general level of prices be affected?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.