$7.$ Monetary Policy $(4$ points$)$

Complete all two parts $($a$-$b$).$

a$.$ Name the most common tool of the three of monetary policy.

b$.$ As per the last week's material, why have the Federal Reserve and South Korean Central Bank, among others, recently lowered their interest rates?

Extra Credit $(4$ points $-1$ point per question$)$:

The unemployment rate in November $2024$ was $\_\_\_\_\_\_\%.$

The revised estimate for GDP growth, released at the end of November, revealed that real GDP for the third quarter of $2023$ increased by $\_\_\_\_\_\%.$

The trade deficit for October $2024$ was$\_\_\_\_\_$

Explain why the federal funds rate is less than the discount rate.