Problem
As signs of economic weakness appeared during the first half of 2001, the Fed reduced its discount rate and the federal funds interest rate several times. What was the Fed trying to do? What was the expected impact on aggregate demand, output, employment, and the general level of prices? Will the Fed's actions cause inflation in the future? Looking back, how would you evaluate the Fed's actions? Did they help or harm the economy?
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.