Use the given scenarios and the information you have learned about Fiscal and Monetary policy to complete the questions that follow   The economy of Northhurst is currently experiencing GDP growth of over 7% with inflation rates of 4% and unemployment of 1% Jaelyn finds that everything she wants to buy costs m ore money, but her wages haven’t increased. She is worried about being able to afford everything she needs. The Federal Reserve notices this change in the economy and decide to take steps to correct it. They can use their 4 tools in the following ways:  What will the Federal Reserve do to the interest on reserves?    What impact will this have on loans from banks?

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