Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to other students or your faculty member. 

Due Day 3

Respond to the following in a minimum of 175 words:

• Discuss how changes in the Federal Reserve’s monetary policy affect at least 1 of the 4 components of GDP (consumption, investment, government spending, net exports).
• Have the Federal Reserve’s countercyclical monetary policies been effective in moderating business cycle swings? Justify your response.

 Due Day 7

Reply to at least 2 of your classmates or your faculty member. Be constructive and professional.

The Federal Reserve uses the monetary policy and in effect stabilizes or equalizes the economy. This is done through the promotion of interest rate adjustments. One of the best examples to show how investment as a component of the GDP is affected by the monetary policy. For instance, current interest rates are decreased because of how the current pandemic has hit the economy hard,