Federal reserve would change the money supply

Assignment Help Macroeconomics

Reference no: EM1325649

Time Lags: Its Impact on the Effectiveness of Discretionary Fiscal Policy

Examine why time lags in discretionary fiscal policy can adversely affect the efforts of the Congress and the President in attempting to maintain a healthy economy. Could it happen that these time lags could actually work to destabilize the economy?

In 2003, the Internal Revenue Service began to mail out refund checks because of a change in the tax law. Economic forecasters predicted that consumption and GDP would increase because of higher refunds on income taxes.

Pretend as if you are an economist and explain your thoughts on whether the tax cuts from the past few years have been successful in promoting economic growth or in preventing a deeper decline? Are there other changes to fiscal policy that you feel would have been more successful?

1.Describe three ways in which the Federal Reserve can change the money supply.

2.If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make?

3.If the Federal Reserve is going to adjust all of these tools during an economic recession, what changes would they make?

4.What changes, if any, to the current condition of these tools would you make at the next meeting of the Federal Reserve? Explain why and the benefits/drawbacks of this strategy.

Reference no: EM1325649

Questions Cloud

Important information about right to privacy : Important information about right to privacy - What are the limits to an employee's right to privacy at work in regards to telecommunications and information?

Write an assembly code segment that calls the subroutine : Write an assembly code segment that calls the subroutine New Function if bits 5 and 6 of PORTD equal 1. Write the same code segment in part (a) using structured assembly constructs.

Important information about business code of ethics : Consumer confidence has fallen considerably in last several years. Where consumer confidence is slow to return because so many of these businesses operated for years and had the vail over all our eyes and suddenly things fell apart and all was rev..

Show what are your thoughts on this conflict : Computer security software - violation of their own appropriate computer use policies. What are your thoughts on this conflict?

Federal reserve would change the money supply : Elucidate three arious ways in which the Federal Reserve would change the money supply.

Experimental research in social psychology : Describe how social psychology distinct from other disciplines, like clinical psychology, general psychology, and sociology.

Evaluating company -employee agreement legal situation : Company A enters into an employment agreement with Sales Manager. Is the covenant an enforceable agreement in restraint of trade? Why or why not?

How star configuration with a single router in the middle : A seven-story office building has 15 adjacent offices per floor. Each office contains the wall socket for a terminal in the front wall, so the sockets form a rectangular grid in the vertical plane, with a separation of 4 meters between sockets, bo..

Task- centered leadership appropriate in organization : Is task- centered leadership appropriate in all organizational settings? Why or why not?

User Account

All Pages