The federal reserve is in charge of handling monetary

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The Federal Reserve is in charge of handling monetary policy for the U.S. List and describe the tools the Federal Reserve would institute if it needed to slow down the economy because it believes that inflation is too high or that it will soon become a problem. Be specific about the changes that would take place in each of the following if the Fed's strategy works: the nation's overall money supply, availability of capital for individuals and businesses, demand, production, employment, and gross income taxes collected by government.

A good format for answering this question would be something like the following (with subheadings to make it easier to grade and to read):

How each of the monetary policy tools would be employed to slow down the economy:
Effects on total money supply (Discuss monetary policy only; don't discuss fiscal policy.):
Effects on demand:
Effects on production:
Effects on employment:
Effects on gross income taxes collected by government within a relatively short period of time:

Reference no: EM13223111

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