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Economics 1 Page

Economics Quiz


Write a small paragraph for each question

Essay Questions:

1. Discuss pros and cons of Federal Reserve being independent (End of chapter 13)

2. Discuss period of stagflation 1965-1982. Discuss the causes with high inflation and high unemployment, how was it remedied, and how to prevent (Chapter 22 & 23)

3. Discuss the impact on the multiplier on the monetary and fiscal policy side from the credit/financial crisis. Banks had money to lend, but couldn’t lend. Consumers held onto cash and did less depositing (confidence levels low, scared) QUANTITATIVE EASING, reactions of the public, and what did it result to monetary policy and fiscal policy (Chapter 14 & 21)


Title: Economics Quiz
Length: 1 pages (275 Words)
Style: MLA


Economics Quiz

Question 1: The Pros and Cons of the Federal Reserve Being Independent

There are several pros of the Federal Reserve being independent. First, it prevents manipulation of the economy by self-interested politicians, and it consequently ensures that all the decisions made by the Federal Reserve are centered on the economy’s and the citizenry’s welfare. Second, it helps prevent inflation—it is feared that the government may decide to print more money in order to deal with the soaring debts.


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