You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon Wireless, AT&T, and T-Mobile. You are asked to write a professional document that discusses the concepts below.
Define the goals and objectives of the Federal Reserve.
Identify the four monetary policy tools used by the United States and explain which monetary policy tool would influence the sale of smartphones in the U.S.
Discuss the difference between expansionary monetary policy and contractionary monetary policy.
Explain how expansionary monetary policy would lead to an increase in the sale of smartphones.
Explain the difference between the M1 and M2 money supply.
Identify whether an increase in the M1 or M2 money supply would lead to an increase in the sale of smartphones.
Explain how higher interest rates and inflation would affect the sale of smartphones in the United States.
Describe the two fiscal policy tools used by the federal government.
Discuss the difference between expansionary fiscal policy and contractionary policy.
Which fiscal policy tool has the greatest influence over the sale of smartphones in the United States and why?
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