Question #1
A) Say the economy is in recession and you are the newly hired Federal director of fiscal policy and have been given the job of creating policies for the next four years that will aid the economy in emerging from recession and beginning a course of healthy economic growth. Based on the assigned reading from the text and any additional scholarly sources you choose to draw from, describe what you will do to succeed at this task.
B) Here the requirements are the same as for A) above, except that in this case the economy is growing rapidly, inflation is rising, and your goal is to bring inflation and growth down to “normal” rates.
Question #2
A) List and explain the six properties of idea money.
B) You are a citizen of a newly developing economy and been appointed to develop a new currency and banking system that works effectively at home and will be accepted by foreign countries your economy intends to trade with. Based on the six properties in A), describe this currency (you may be creative) and the banking system.
Question #3
Based on your understanding of the federal budget from the assigned reading and any other sources you select, explain how the federal budget could be balanced and the federal debt reduced by 20% in six years.
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