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| Chapter 16: Government and Economy |
| What Government Does and Why It Matters |
| Go to www.federalreserve.gov/policy.htm and look at the policy tools available to the Federal Reserve Board. |
| 1. Discuss three of the policy tools the Fed has at its disposal. |
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| 2. Read this article by Paul R. La Monica and explain his argument on the limitations of the Fed. |
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| 3. Read this Christian Science Monitor article by Mark Trumbull and explain his position on the power of the Fed. |
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| 4. In your opinion, how much power over the economy does the Fed have? |
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| 5. Trumbull argues that “price stability is Job 1.” Given that the economic policies of this country have given enormous benefits to the wealthy but relatively few to the poor and middle class, do you agree with Trumbull that government economic policy has been a success? |
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| 6. In your opinion, what should be “Job 1?” |
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