3. Suppose the current economic growth rate is lower than usual, (i) what kind of monetary policy (expansionary or restrictive) do you suggest the Fed take? (ii) Discuss what kinds of policy tools (e.g. buy/sell securities from the market, increase/lower discount rate or reserve requirement) the Fed can use to implement your policy recommendation in (i). 4. What is the current reserve requirement for banks in the US? Search the Internet to find the answer
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