Answer questions about types of money, how the Fed uses money, and what happens when there is money but it is not being spent. This is a multi-part assignment, so make sure that you have addressed each question or topic. The best way to approach this assignment is to prepare your responses in outline form following the order of each question/topic. This will help you keep track of your responses.Be sure to use references within the paper to support your answers.Are credit cards or debit cards money? Explain your answer.“When the Fed makes an open market purchase of government securities, the quantity of money will eventually decrease by a fraction of the initial change in the monetary base.” Is the previous statement correct or incorrect? Explain your answer.Monetary policy is action taken by the Fed to influence the level of real GDP. Suppose the Fed wants to increase the money supply. What three tools could the Fed use to achieve this goal? Be specific in your answer and discuss the implications of this policy.Use concepts from the modular background readings as well as any good quality resources you can find. Cite all sources within the text and provide a reference list at the end of the paper.Length: 4–5 pages double-spaced and typed in 12-point Times New Roman font.Demonstrate your ability to understand an application of monetary policy.Some in-text references to the modular background material using APA formatting.The essay should address each element of the assignment. Remember to support your answers with solid references, including the Case readings.Please review the following background materials:5 Stages of Evolution of Money, from Your Article LibraryUse the “Tiny URL” to access the site: https://tinyurl.com/y9n6adgzIf the “TinyURL” is not working, here is the full URL:http://www.yourarticlelibrary.com/economics/money/5-stages-of-evolution-of-money/30311/The History of Money: From Barter to Banknotes, Investopedia 2015Use the ‘TinyURL’ to access the site: https://tinyurl.com/d78f5uyIf this is not working, here is the full URL:http://www.investopedia.com/articles/07/roots_of_money.aspThe Fed – Monetary Policy, by the Board of Governors of the Federal Reserve System. Read the paragraph under Monetary Policy and then click ‘Learn more’ and the page on Purposes & Functions. Click on the image for each of the seven areas to get more information about that specific topic.Use the ‘TinyURL’ to access the site: https://tinyurl.com/ybjaojhrIf it is not working, here is the full URL:https://www.federalreserve.gov/monetarypolicy.htmFederal Reserve Tools and How They Work, from The Balance, 2016Use the ‘TinyURL’ to access the site: https://tinyurl.com/y9sh8szjIf it is not working, here is the full URL:https://www.thebalance.com/federal-reserve-tools-and-how-they-work-3306134What are the Effects of Inflation on the Economy? From the Balance, 2017Use the ‘TinyURL’ to access the site: https://tinyurl.com/y99pb4pcIf it is not working, here is the full URL:https://www.thebalance.com/what-are-the-effects-of-inflation-357607Monetary Policy Tools: How They Work, US Economy, 2017Use the ‘TinyURL’ to access the site: https://tinyurl.com/ya38jsbxIf it is not working, here is the full URL:https://www.thebalance.com/monetary-policy-tools-how-they-work-3306129
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