The questions are below. 150 words minimum with references.The Federal Reserve may increase or decrease money supply depending on the economic condition.What policy instruments does the Fed use for t

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The questions are below.  150 words minimum with references.

The Federal Reserve may increase or decrease money supply depending on the economic condition.

  1. What policy instruments does the Fed use for the monetary policy?
  2. 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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