Intro to MacroEcon - College level - 8 questions total - some Essay

launching to MacroEcon - College level - 8 questions total - some paragraph-long answers and some graphs - Essay ExampleEssentially the Fed tries to match the natural centers of the business cycle. It looks to cool rapid expansion to control prices and moderate the resulting downturn. When the thriftiness is detection or not expanding sufficiently they look to increase economical activity thereby helping the economy maintain full employment.The main tool the Fed has is to modify short limit interest grade by means of open market activities. These actions are undertaken by the Federal Open Market Committee which sets the national cash rate. The Fed also makes loans through the discount window these loans increase the silver supply. Loans taken through the discount window are taken at a rate below the federal funds rate.Though less often employed, the Fed can also modify the required reserve ratio. This is the count of funds that banks are required to keep in their vaults c ompared to the amount loaned out. Increasing the reserve ratio has the effect of pulling money out of the system. Decreasing the reserve ratio has the effect of increasing the amount of money in the system.3B) I agree with Bernankes remarks and logic on the state of the economy as wholesome as the necessity of using unconventional monetary policy. I do have concerns that longer term policy may be more difficult to back out of once implemented. The continued in high spirits unemployment rate as well as low levels of growth merit additional monetary measures akin those employed by the Fed.Core inflation remains low so expansionary policies do not unless risk triggering excessive inflation. To fulfill its mandate the Fed should look to tools such as moderating fair term interest rates. While controversial it reinforces expectations of a low interest rate environment in the short term.4A) The economy does not have sufficient private sector demand to sustain economic growth at the l evels needed to recover to the