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5. Given the current state of the economy, what should Fed. Do
with monetary policy and why? (15 points)

6. Compare the pros and cons of independent central bank? (5
points)

7. Compare pros and cons of monetary rule and discretionary
monetary policy (5 points)

8. Give the money multiplier and explain how the 3 different
players impact the money multiplier and the money supply (20
points)