1. The Federal Reserve ("The FED") can expand and contract the supply of money in the system in a number of ways, what goals/objectives is the FED trying to accomplish by doing so? Hint: there are three objectives.
2. Prior to 2008 (Great Financial Crisis) the FED had three ways ("tools") that it used to control the money supply, what were those ways? Provide a brief description of each one of them.
3. After 2008 the FED began to employ a new set of "tools", what were those tools? Provide a brief description of each tool. Hint: there are three.
4. What type of policy is the FED engaging in when it attempts to manipulate the supply of money in the economy?
5. I discussed the "activist" view that emerged after the Great Depression and World War II; what was that view? What person is the "activist" view typically associated with?
6. The FED (monetary policy) and the Federal Government (fiscal policy) attempt to control the economy by manipulating aggregate demand, graphically, illustrate how they go about doing that. Provide a brief explanation of what is going on in the graph.