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You have learned that the Fed has a stated goal of stable prices (inflation) and full employment. In this discussion, we explore the importance of the goals and why the Fed focuses on these two variables above many other possible options.
Discuss the tools available to the Fed to achieve these goals. Some tools are used much more aggressively than others. Discuss why that is and how those tools work. Address how you feel the Fed is currently performing based on the stated goals. Conclude by discussing if you agree with the stated goals and what you might change if you could.
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