Monetary Policy – Discuss the importance of monetary policy and the three tools of monetary policy providing an example of how each tool is used.

Part 3 Essays: Complete ANY TWO of the following essays in your own words providing examples and your own opinions not textbook definitions. Each essay should be about one page in length.

 

A. Monetary Policy – discuss the importance of monetary policy and the three tools of monetary policy providing an example of how each tool is used.

 

B. Fiscal Policy – Discuss the importance of fiscal policy and the two tools of fiscal policy providing an example of how each tool are used.

 

C. Fischer effect. Discuss and provide an example of the important trade offs between unemployment and inflation.

 

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