The FED Policy During the COVID-19 Pandemic: Its Intent and Its and Consequences

Instructions

During the COVID-19 pandemic that began to adversely impact the U.S. economy in early 2020, the Federal Reserve took a number of actions to attempt to ameliorate the impact of the COVID virus on the economy.

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  1. Identify and describe the specific actions that the Federal Reserve took to ameliorate the negative impact that the covid virus had on the economy.
  2. Using the concepts of monetary policy that were covered in the course, explain how the actions of the Federal Reserve affected aggregate demand.
  3. Explain how the actions that were taken by the Federal Reserve might result in inflation or stagflation.

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