Expansionary Economic Policy
Chapter 7: Classical Macroeconomics and the Keynesian Challenge
Chapter 9: Taxes, Government Spending, and Fiscal Policy
Chapter 12: Banking and The Federal Reserve System
Chapter 14: Monetary Policy In Theory And Practice
In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the actions the government would take to address expansionary fiscal and monetary policies:
- The necessary change in taxes and government spending,
- The effect on aggregate demand, GDP, and employment.
Expansionary Monetary Policy:
Explain the actions of the Fed in regard to the three tools.
- When the required reserve ratio is increased or decreased
- When the discount rate is increased or decreased
- Buying or selling government securities when conducting expansionary monetary policy
Writing the Final Paper
The Final Paper:
- Must be eight to ten double-spaced pages in length and formatted according to APA style as outlined in your approved styled guide.
- Must include a title page that includes:
- Title of paper
- Student’s name
- Course name and number
- Instructor’s name
- Date submitted
- Must include an introductory paragraph with a succinct thesis statement.
- Must address the topic of the paper with critical thought.
- Must conclude with a restatement of the thesis and a conclusion paragraph.
- Must use at least four scholarly resources, including the textbook.