Discussion:
"Externalities and the Environment"
Please respond to the following:
• Analyze the externalities concerning optimal levels of pollution and make at least one recommendation for the most economically viable way to proceed over the next 20 years. Explain your rationale.
• Identify a requirement of the Environment Protection Agency and discuss whether or not you believe it is effective.
"Income Distribution and Poverty"
Please respond to the following:
• Assess current redistribution programs to determine if they help or hurt the economy overall. Provide specific examples to support your response.
• From the second e-Activity, discuss the contributing factors to poverty in your area and possible economic policies that could be pursued to redress the issue. Provide specific examples to support your response.
e-Activity
• Use the Internet to find and research contributing factors to poverty in your city or state. Be prepared to discuss.
"Banking and the Money Supply"
Please respond to the following:
• Explain in simple terms (yet covering all important steps) how banks create money.
• Discuss the Fed's tools for controlling the monetary supply and how well you believe they work. Provide examples to support your response.
"Monetary Theory and Policy"
Please respond to the following:
• Compare how changes in the money supply affect aggregate demand in the short run against how it affects aggregate demand in the long run.
• In terms of monetary policy, discuss whether the Fed should focus on the interest rates in the short run or on the supply of money in the long run. Explain your rationale in your response.