Expansionary Economic policy

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Business Finance

Question Description

Final Paper:
Expansionary Economic Policy

Focus of the Final

In an effort to move the economy out of a
recession, the federal government would engage in expansionary economic
policies.  Describe the actions the government would take in conducting
expansionary fiscal policy and expansionary monetary policy.

Expansionary Fiscal Policy: Review
Chapter 7: Classical Macroeconomics and the Keynesian Challenge and
Chapter 9: Taxes, Government Spending, and Fiscal Policy

Explain the actions the federal government would take while engaging in
expansionary fiscal policy in terms of the following:

  • The necessary change in taxes and government spending,
  • The effect on aggregate demand, GDP, and employment.

Expansionary Monetary Policy:
Chapter 12: Banking and The Federal Reserve System and Chapter 14:
Monetary Policy In Theory And Practice. 

Identify the three tools available to the Federal Reserve Bank (The Fed) when
conducting monetary policy.  Explain whether the Fed would:

  • Increase or decrease the required reserve ratio
  • Increase or decrease the discount rate
  • Buy or sell government securities when conducting expansionary monetary

Explain how these actions would affect the money supply, interest rates,
spending, aggregate demand, GDP, and employment.

Writing the Final
The Final

1.Must be 5 to 6 double-spaced pages
in length and formatted according to APA style as outlined in your approved
style guide.
2.    Must have a cover
page that includes:

a.Title of paper b.Student’s name c.Course name and number
d.Instructor’s name e.Date submitted

3.Must include an introductory
paragraph with a succinct thesis statement. 4.Must address the topic of the
paper with critical thought. 5.Must conclude with a restatement
of the thesis and a conclusion paragraph. 6.Must use at least four scholarly
resources, including the textbook.   Two references must come from the Ashford
Library.7.Must use APA style as outlined in
your approved style guide to document all sources. 8.Must include, on the final page, a
Reference List that is completed according to APA style as outlined in your
approved style guide.

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Explanation & Answer

fntvgnuz (527)
Purdue University

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