“Money, Banking, and the Financial System” Please respond to the following:
- From the e-Activity, assess the implications of changing the federal funds rate from 4.5% to 2%. Explain how this change will affect the economy’s performance.
- From the e-Activity, analyze the relationship between the indicators, primarily the inflation rate and unemployment rate. As one indicator changes (increases, decreases, remains static) explain what happens to the other. (i.e., Does it also increase, decrease, remain static at the same rate of change?) Explain the reasons for this type of relationship and provide one real-world example that supports your explanation
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