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Q1. What are the three tools the Federal Reserve uses to change the money supply and insert rates in the economy? Which of these tools is most important and why?

Q2. On the Federal Reserve Web site (www.federalreserve.gov/FOCM/beigebook), find the latest version of the Beige Book that summarizes economic conditions in your Federal Reserve district. Summarize those conditions and relate them to current FOMC policy.

Q3. A change in the real money supply can result either from a change in the nominal money supply through Federal Reserve policy (holding the price level constant). The change in the nominal money supply causes a shift of the aggregate demand curve, whereas a change in the price level causes a movement along the aggregate demand curve. Explain.

Q4. Find one or more articles in the Wall Street Journal or other business publications that describe changes in fiscal and monetary policies in the United States. Discuss how these policies relate to the model of aggregate demand and aggregate supply and the issues involved in implementing the policies.

Q5. Compare and contrast key aspects of the economic environments which would impact business operations during a time when Classical economics was the prevailing theory and when Keynesian economics was the prevailing theory." 

Reference no: EM13141856

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