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Unit 7 Discussion
Discussion Topic

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.
Read
Chapters 14 and 16, and remember to include references and links to the
websites that you feel are important contributors to your posts
(comments).
The Federal Reserve may increase or decrease money supply depending on the economic condition.
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?

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