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Explain how your policy would help increase aggregate demand. That is, does it increase C, I, G, or X?
a. Determine the monetary policy action and its consequences b. Determine the fiscal policy actions and its consequences.
Does Zakat have any role to play in the fiscal system of Muslim countries or should it be free from government interference?
"Countries whose currencies are linked to each other through fixed exchange rates usually pursue very different monetary and fiscal policies".
Question: How can the 3 major tools of monetary policy correct a recessionary gap and an inflationary gap?
Briefly outline what you consider to be the important economic arguments for and against Canada pursuing a North American monetary union (NAMU)
Explain the process of adjustment in the economy under a: a) a flexible exchange rate system b) a fixed exchange rate system
Do you feel the tax cuts from the past few years have been successful in promoting economic growth or in preventing a deeper decline?
What does he mean by the above statement and what indicators would he use to illustrate his position. Explain both the monetary and fiscal indicators.
Question: What is the difference between expansionary monetary policy and expansionary fiscal policy?
Explain how the Bank of Canada can influence interest rates and the money supply in Canada.
What are the advantages and disadvantages? Is there any limitations? How can congress or the president help the nation?
Draw the market for loanable funds and show graphically how investment and savings will change in response to the change in taxes.
Question 1. Describe three ways in which the Federal Reserve can change the money supply.
In principle, could the federal reserve conduct monetary policy through the purchase and sale of stocks on the New York stock exchange?
Assume 3% is the Yf (full employment) growth rate for the real GDP and the real SHORT TERM interest rate (r) is constant at 1%.
What are the risks to other macroeconomic measures such as real GDP and unemployment? How can the monetary authority mitigate these risks?
The Federal Reserve has traditionally conducted open market operations through the purchase and sale of government bonds.
Summarize and critique a recent article or editorial piece on monetary policy from a major newspaper, magazine, or website.
Suppose the Federal Reserve purchased gold or foreign currency. How would this purchase affect the domestic money supply?
What is the stated direction of recent monetary policy? What policy actions have the Federal Reserve taken to confirm that direction?
What do you think of the effectiveness of US's monetary policy over the past three years, including the frustrating years of 2001-2002?
Question: Does anybody want to illustrate Monetary Policy using the following example:
Considering the long time lags of monetary and fiscal policies, what if the economy needs a boost today, how would this be accomplished quickly and effectively?
Besides tradeoffs of too much stimulation and devalued dollar with negative ramifications, are there any other tradeoffs?