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How does fiscal policy differ from monetary policy

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1. How does fiscal policy differ from monetary policy?

2. What are the tools of fiscal policy, i.e., how can fiscal policy be implemented?

3. What fiscal policies were implemented to stimulate the economy during the recent recession, which has been called the Great Recession?

4. How can fiscal policy influence aggregate demand?

5. Explain the multiplier effect, as it applies to fiscal policy?

6. How does crowding out affect the multiplier effect?

7. Explain the process through which the FOMC increases the monetary supply?

8. What happens to the money supply when the FED increases the reserve requirement?

9. What economic policies would John Maynard Keynes have likely suggested be implemented during the Great Recession?

10. Repeat question 8, but substitute Friedrich Hayek for Keynes.

11. If the federal government is required to maintain a balanced budget, what would be the affect on automatic stabilizers in a recession

Reference no: EM131018691

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