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

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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Page 1: 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Increase ItIncrease It

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Decrease SpendingDecrease Spending

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Increase ItIncrease It

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Raise TaxesRaise Taxes

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Sell BondsSell Bonds

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Decrease ItDecrease It

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Increase Increase SpendingSpending

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Decrease ItDecrease It

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Decrease TaxesDecrease Taxes

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Page 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

Mr. Weiss

Fiscal and Monetary Policy – Fiscal and Monetary Policy – Section 6Section 6

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

Buy BondsBuy Bonds