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Fiscal Policy

1.    Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month.  Explain your reasoning.
2.    Choose a time frame whether it be current or historical, describe the economic situation and explain the appropriate fiscal policy that should be or was used to help stabilize the economy. Provide support for your response.
“Money” Please respond to the following:
3    Given our current economic situation, determine the steps that the Federal Reserve should take to help stabilize our economy.
4    Explain how each of the following variables will be affected by proposed steps that you have identified in the first part of the discussion: money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your response.
“Monetary Policy and Inflation” Please respond to the following:
5    From this week’s e-Activity, examine two methods that the Federal Reserve can implement to support a stronger economic recovery. Provide support for each method in your response.Week 9 eActivity Go to the Federal Reserve Website to read the press release titled “Federal Reserve issues FOMC Statement,” dated September 21, 2011 located at http://www.federalreserve.gov/newsevents/press/monetary/20110921a.htm
6    Identify one way that the Federal Reserve’s actions have influenced a recent decision that you have had to make. Explain the basis for your decision.
“Comparative Advantage and International Trade” Please respond to the following:
7    From the e-Activity, take two positions, and explain how the trade agreement both helps and hurts the U.S. economy. Provide support for your justification in your response. e-Activity – Use the Internet to research a country with which the U.S. has established a trade agreement. Be prepared to discuss.
8    Imagine that you were the president of an emerging country that is trying to reduce the number of its imports. Explain one (1) protectionist policy that you would utilize to help domestic industry overall.
“Finance” Please respond to the following:
9    Imagine that you own a business in which the majority of revenue came from exporting products to other countries. Determine if you would support a fixed or flexible exchange rate system. Provide support for your response.
10    In the same role of exporter from the first part of this discussion, determine how an appreciating and depreciating currency would affect your company’s ability to export.  Provide support for your response.

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