21 May WHAT FISCAL POLICY TOOLS COULD BE USED TO STIMULATE THE ECONOMY?
Mod3 CA
Case Assignment Resources:
1. How is a recession defined? Is the U.S. currently in a recession? Explain.
2. Assume you are an advisor to President Obama. What fiscal policy tools could be used to stimulate the economy? Be sure to review Obama’s 2011 Budget Proposal (NY Times). Are there any specific areas that you would change?
3. Now assume you are an advisor to Ben Bernake. What specific tools can the Federal Reserve use to stimulate the economy and increase economic growth. Please identify at least two tools.
4. What should the Fed do if it wanted to reduce inflation in terms of the money supply?
Case Assignment Expectations:
Use concepts from the modular background readings as well as any good quality resources you can find from the cyberlibrary or other internet search engines. Pleas be sure to cite all sources within the text and provide a reference list at the end of the paper.
Length: 4-5 pages double spaced and typed.
The following items will be assessed in particular:
Your ability to understand the relationship between the supply of money and the Federal Reserve.
Your ability to understand how fiscal policy can stabilize the economy.
Some in-text references to the modular background material (APA formatting not required).
The essay should address each element of the assignment. Remember to support your answers with solid references including the case readings.
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