Important policy objectives of the federal government include economic growth, high employment, price stability, and a balance in international transactions. The achievement of these objectives is the responsibility of monetary policy, fiscal policy, and debt management carried out by the Federal Reserve System, the President, the Congress, and the U.S. Treasury. Describe the responsibilities of the various policy makers in trying to achieve the four economic policy objectives.
Answer to relevant QuestionsAn economic recession has developed and the Federal Reserve Board has taken several actions to retard further declines in economic activity. The U.S. Treasury now wishes to take steps to assist the Fed in this effort. ...The SIMPLEX financial system is characterized by a required reserves ratio of 11 percent; initial excess reserves are $1 million; and there are no currency or other leakages. a. What would be the maximum amount of checkable ...List and describe briefly the economic policy objectives of the nation. Trace the effect on its accounts of a loan made by a bank that has excess reserves available from new deposits. What is meant by the statement that the international monetary system has operated mostly under a “gold standard”? What are the major criticisms associated with being on a gold standard?
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