Question: Name/I.D. Number: Section: Date: Part 3. Discussion Questions and Problems 1. Why is the demand curve for money downward sloping? 2. Explain how the Keynesian

Name/I.D. Number: Section: Date: Part 3. Discussion Questions and Problems 1. Why is the demand curve for money downward sloping? 2. Explain how the Keynesian transmission mechanism works. 3. Explain how the monetarist transmission mechanism works. 4. Argue the case for and against a monetary rule. 5. How does inflation targeting work? 6. According to market monetarists, what problems might arise from a sharp decline in Nominal GDP? 7. What are the differences between Activist and Non-Activist (Rule-Based) monetary policy

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