In your responses, comment on at least two posts from your peers. Compare and contrast your thoughts about monetary policies. Research current levels of the federal funds rate, inflation, and unemployment and make recommendations on monetary policy actions that would help maintain economic stability.

When there are changes to the federal funds rate is can effect unemployment in the following way. When the rate increases the interest rates go up for banks' lending out money, when this occurs people tend to spend less money and take less loans as a way of avoiding paying the higher prices, this also affects businesses whose cost then go up and cause them to potentially have to cut costs and one of those areas can be employees, which would result in higher unemployment if the federal funds rate increased.

When the federal funds rate increases, it increases the amount that banks have to return on their loans, so they increase the rates. This is because the Federal Reserve increased the amount they require, and the change is made up by the banks who have a minimum amount they need to have on reserve which is increased when the reserve's is. This change then requires the banks to raise the interest rates to meet this new need.