1. Explain why monetary policy is the main tool for stabilizing the economy Identify the effects of an inappropriate monetary policy 2.Explain the concept of monetary neutrality and its relationship...

1. Explain why monetary policy is the main tool for stabilizing the economy Identify the effects of an inappropriate monetary policy 2.Explain the concept of monetary neutrality and its relationship to the long-term economic effects of monetary policy. Use the classical model of the price level 3.Explain why efforts to collect an inflation tax by printing money can lead to high rates of inflation and even hyperinflation