Research PaperIn this assignment you are being asked to evaluate the economic situation described below. You will focus on the role of the Federal Reserve when the economic activity is slowing down, indicating it may be entering the contraction phase of the business cycle and, possibly, a recession.Assume the economy is entering a recession. The Federal Reserve is faced with the task of trying to stabilize the economy with the tools at its disposal. Unemployment has increased from 5 percent to 9 percent. Inflation has decreased from 4 percent to 1 percent. Gross Domestic Product has decreased in the past two consecutive quarters from (-1) percent to (-1.5) percent, which has caused a contraction in output. Consumer confidence has dropped from eighty-five on the Michigan Consumer Sentiment Index to sixty-seven.You have read the following two headlines in the news (these are fictional headlines but you might use them in goggle to find real articles);Market turmoil turns all eyes toward FedEconomists see dramatic Fed action unless economy improvesThe research paper must address the following:1. Explain the role of the Federal Reserve as the central bank and describe the economic indicators the Federal Reserve will analyze as a basis for its decisions.2. Describe which monetary policies the Federal Reserve might use to influence the money supply and explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy.3. Analyze the implications of the Federal Reserve’s actions on the world financial markets.

I would like an Excel document attachment with the steps and answers to this problem please. 1)Input section clearly labeling all the variables and current values2)Use year by year table including beginning balance, new savings and growth, dividend income, capital gains income, dividend tax, capital gains tax, ending balance3) Use goal seek to estimate the initial saving amountYou value education and you want your child to receive the best possible education. But sending a child to private schools and Ivy League colleges is not cheap. You want to start saving money so that when you child need the money, you can support him/her. The current assumption is you will have your 1st child in 5 years and you wish to have $200,000 in today’s dollars when he/she is 15 years old. Based on current situation, you expect inflation to be stable at 2% in the foreseeable future. Your plan is to put down savings each year and you can save every year an amount that’s 2% more than the previous year. All your savings go to a stock fund that is expected to return 10% annually, of which 1.5% will be dividends and 8.5% will be capital gains. You pay 15% tax on dividend income as you receive them at the end of each year. You re-balance your fund every year, in other words, you sell all your positions and re-invest at the beginning of a new year, so capital gains are also realized every year, you pay 15% tax on capital gains as well. To have enough money for your child’s education in 20 years, how much money do you have to save in the first year?