1. The Federal Reserve Board under the direction of Janet Yellen had kept interest rates at amazingly low levels. What are the benefits and consequences of taking on such action? Do you feel the policy of the Fed raising rates is correct? What are the benefits and consequences of this action? Include in your answer issues as interest rate stimulus, inflation, money supply. Finally state your opinion of whether Janet Yellen and the Fed are correct with current policies correct. (1 1/2 page min)
2. Study Questions:
What are the government’s fiscal policy options for ending a severe recession?
What are the short term and long term consequences of using fiscal policy for ending a server recession?
What are the Monetary policy tools the Federal Reserve Board uses.
What is the Federal Funds Rate?
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