Assignment:
Exam 3 covers chapters 28 and 30-34 in the McConnell/Blue textbook, the Fed Today video documentary, and the accompanying class discussions and presentations. In this exam assignment, you will answer each of the following questions in essay format. Your answers must be in your own words for sections 1-2, although brief quotations or citations are possible for section 3. Recall that plagiarized work will not be accepted and will result in a failing grade for the exam. Be sure that your answers are typed, doubled-spaced, and use 12 point Times New Roman font. Your completed exam is due at the start of class on Tuesday, April 26th and must be submitted through the appropriate link on Blackboard (under the Resources/Quizzes link).
Section 1 (1 page minimum)
1. What is fiscal policy? Who implements fiscal policy in the U.S. economy?
2. What are the two general types of fiscal policy? What 2 tools are used to implement fiscal policy?
3. When are the two general types of fiscal policy used? Be specific in your answer.
4. Economists debate whether fiscal policy is an effective way to control and stimulate the economy. Present arguments in favor of the view that fiscal policy is effective and arguments that fiscal policy is ineffective or destructive.
5. Describe trends in the economy regarding the use of fiscal policy in the last 12 months. Be specific.
Section 2 (1 page minimum)
1. What is monetary policy? Who implements monetary policy in the U.S. economy?
2. What are the two general types of monetary policy? What 3 tools are used to implement monetary policy?
3. When are the two general types of monetary policy used? Be specific in your answer.
4. Economists debate whether monetary policy is an effective way to control and stimulate the economy. Present arguments in favor of the view that monetary policy is effective and arguments that monetary policy is ineffective or destructive.
5. Describe trends in the economy regarding the use of monetary policy in the last 12 months. Be specific.