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How Money Affects the Economy

This Discussion deals with the various forms and uses of money, the roles of the Federal Reserve System, money supply, money demand, and monetary policy instruments.
What policy instruments does the Fed use for the monetary policy?
What are the pros and cons of using expansionary and contractionary monetary policy tools under the following scenarios: depression, recession, inflation, and robust economic growth? Which do you think is more appropriate today?

Sample Solution

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