PLEASE HELP !!
Scenario A

College graduates are moving back
in with family in record numbers.
They are waiting longer than
previous generations to buy homes
and start families. Data show
downward trends in new home
building, mortgage applications, and
the birthrate. Multiple markets are
complaining of falling demand. A
national supplier of home goods
permanently shut down. The media
is calling babies born today part of
the "baby bust generation."
Economists predict future school
closings and labor shortages.

1. Would the Fed address the scenario with expansionary or
contractionary policy? Explain.

2. What is a specific monetary action the Fed might use in this
scenario? Identify the tool and how the Fed would use it.
Explain how-this would address the scenario.


3. What is a specific fiscal action that Congress might use in this
scenario?