1- Suppose the Federal Reserve (Fed) believes the economy is producing less than its full employment level of output (less than its potential) and decides to stimulate the economy by using an expansionary monetary policy. After specifying the primary policy tool of the Fed to achieve economic stability, briefly (7-8 lines) discuss how this policy tool works to accomplish the Fed’s objective. Use Chs 14 & 15 for the reference 2- only 1 classmate in your replies.
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