Part A -
Question 1 -
A) List and explain the six properties of idea money.
B) You are a citizen of a newly developing economy and been appointed to develop a new currency and banking system that works effectively at home and will be accepted by foreign countries your economy intends to trade with. Based on the six properties in A), describe this currency (you may be creative) and the banking system.
Question 2 -
Based on your understanding of the federal budget from the assigned reading and any other sources you select, explain how the federal budget could be balanced and the federal debt reduced by 20% in six years.
Your answers to the questions below must each be at least 150 words. The content is to be primarily in your own words. All sources used must be clearly referenced and cited according to APA standards. This includes using quotation marks for direct quotes.
Part B -
Question 1 -
A) List the tools used by the Federal Reserve to expand and contract the money supply and clearly explain how they work.
B) Evaluate the effectiveness and efficiency of each tool and explain which are used the most often and why.
Question 2 -
Suppose that the Federal Reserve was dissolved and replaced with a system of private banks that compete with each other. If you were overseeing this new industry, what would you do with the goal of making it work successfully?
Question 3 -
A) What are the short and long run effects of the Federal Reserve steadily increasing the money supply? How do we know when it is time to stop increasing the money supply and switch to another alternative?
B) What are the short and long run effects of the Federal Reserve steadily decreasing the money supply? How do we know when it is time to stop decreasing the money supply and switch to another alternative?
Each answer should be at least 150 words long and in APA format. These answers should be primarily in your own words and all sources (including the required course text) drawn from must be clearly referenced and cited, per APA requirements. Each question is worth 25 points.
Part C -
QUESTION 1 -
Based on the required reading from the text and any other scholarly sources you choose to use, please outline and describe a macroeconomic approach a country could use that would maximize the aggregate demand the rest of the world's nations have for the goods and services it produces.
QUESTION 2 -
A) The Trump administration has hired you to present a specific strategy for keeping America's inflation and unemployment rates low. Please share it here.
B) After presenting the strategy a concern is voiced that if either inflation or unemployment are too low they will cause the other to rise. Explain how this can happen and how you will prevent it.
QUESTION 3 -
A newly formed country wants to make sure the economy it is building will successfully generate jobs and steadily rising standards of living. Based on what you have learned in this course and from any other scholarly sources, list and explain the components of a successful economy.
QUESTION 4 -
Go to https://www.heritage.org/index/ and look through the 2017 Index of Economic Freedom, where 150+ countries are ranked according to their levels of economic freedom.
A) Pick a country in the top ten of the rankings and clearly explain the primary reasons for its ranking.
B) Pick a country in the bottom ten of the rankings and clearly explain the primary reasons for its ranking.