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Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses.

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Presentation on theme: "Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses."— Presentation transcript:

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2 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 1. Monetary policy to correct for inflation, using the discount rate.

3 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 1. Monetary policy to correct for inflation, using the discount rate. Increase It

4 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 2. Fiscal policy to correct for inflation, using government spending.

5 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 2. Fiscal policy to correct for inflation, using government spending. Decrease Spending

6 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 3. Monetary policy to correct for inflation, using the reserve requirement.

7 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 3. Monetary policy to correct for inflation, using the reserve requirement. Increase It

8 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 4. Fiscal policy to correct for inflation, using tax changes.

9 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 4. Fiscal policy to correct for inflation, using tax changes. Raise Taxes

10 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 5. Monetary policy to correct for inflation, using open market operations.

11 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 5. Monetary policy to correct for inflation, using open market operations. Sell Bonds

12 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 6. Monetary policy to correct for recession, using the discount rate.

13 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 6. Monetary policy to correct for recession, using the discount rate. Decrease It

14 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 7. Fiscal policy to correct for recession, using government spending.

15 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 7. Fiscal policy to correct for recession, using government spending. Increase Spending

16 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 8. Monetary policy to correct for recession, using the reserve requirement.

17 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 8. Monetary policy to correct for recession, using the reserve requirement. Decrease It

18 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 9. Fiscal policy to correct for recession, using tax changes.

19 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 9. Fiscal policy to correct for recession, using tax changes. Decrease Taxes

20 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 10. Monetary policy to correct for recession, using open market operations.

21 Mr. Weiss Fiscal and Monetary Policy – Section 6 The Federal Government uses fiscal policy to act in a counter-cyclical manner. The Federal Reserve uses monetary policy for the same reason. Indicate the specific policy solution that would address the problems below within the given guidelines. 10. Monetary policy to correct for recession, using open market operations. Buy Bonds

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