1. Explain open Market options, discount rate changes, and reserve requirement changes. What is quantitive easing? Why might monetary stimulation fail, despite ZIRP?
2. Show the chain of events that the Fed initiates to change the money supply an how it effects the GDP.Define and illustrate both”easy”an “”tight” Money policy. Explain cyclical asymmetry
3. What is meant by economic growth? Why might economic growth not necessarily improve the well-being of the average citizen?