Assignment: Fiscal Policy
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.
o Define the goals and objectives of the Federal Reserve.
o 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.
o Discuss the difference between expansionary monetary policy and contractionary monetary policy.
o Explain how expansionary monetary policy would lead to an increase in the sale of smartphones.
o Explain the difference between the M1 and M2 money supply.
o Identify whether an increase in the M1 or M2 money supply would lead to an increase in the sale of smartphones.
o Explain how higher interest rates and inflation would affect the sale of smartphones in the United States.
o Describe the two fiscal policy tools used by the federal government.
o Discuss the difference between expansionary fiscal policy and contractionary policy.
o Which fiscal policy tool has the greatest influence over the sale of smartphones in the United States and why?
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.