Describe the Federal Reserve’s monetary policy process and explain the effects of monetary policy.

Describe the Federal Reserve’s monetary policy process and explain the effects of monetary policy. A.The Monetary Policy Process 1. Monitoring Economic Conditions 2. Decisions of the Federal Open Market Committee (FOMC) B.The Federal Funds Rate Target C.The Ripple Effects of the Fed’s Actions 5. Consumption Expenditure, Investment, and Net Exports Change 6. Aggregate Demand Changes D.Monetary Stabilization in the AS-AD Model E.The Fed Eases to Fight Recession 1. The Fed Tightens to Fight Inflation 2. The Size of the Multiplier Effect F. Limitations of Monetary Stabilization Polic