“The Federal Reserve and Monetary Policy”

Visit the Federal Reserve website and answer the following questions in your own words.

• What is the mission and legal mandate of the Federal Reserve System (FED)?
• What policy tools are available to the FED to achieve its mission?
• What are the FED’s inflation and full-employment targets?
• When the economy is struggling with high unemployment, should the FED undertake expansionary or contractionary monetary policy ?
• What tools would they use to accomplish this?
• How will the monetary policy you recommended above impact the interest rate, inflation rate, aggregate demand, and real GDP.