Home » AddressinginflationusingFiscalandMonetaryPolicytools. Scenario-TheUS economyiscurrentlyexperiencinghighratesofinflation. YouhaveFiscaland Monetary…

AddressinginflationusingFiscalandMonetaryPolicytools. Scenario-TheUS economyiscurrentlyexperiencinghighratesofinflation. YouhaveFiscaland Monetary…

1. AddressinginflationusingFiscalandMonetaryPolicytools. Scenario-TheUS economyiscurrentlyexperiencinghighratesofinflation. YouhaveFiscaland Monetary policy tools available to address this problem:

a. ToattacktheproblemofinflationyoumustselectoneMonetaryPolicy toolandoneFiscalPolicytool. WritedownthenameofyourFiscalPolicy tool and your Monetary Policy tool.

i. Think the options through and write down your choices.

b. Pleaseexplainwhyyouselectedthetoolsthatyouselectedandwhyyoudid not select the other choices?

i. Specifically, explain what is so good about the tool you selected and what is not so good about the tools you did not select? Do this for boththeMonetaryPolicytoolandtheFiscalPolicytool. Thekey here is to use some decision criteria in making your choice.

c. Thoroughlyandcompletelyexplainhowyoursolutionwouldworktosolve the problem of inflation, and indicate the impact your solution would have on at least 5 key economic variables. Be specific.

i. Present this using the chain of events format with up or down arrows toindicatethedirectionofimpactoneachvariable. Ineedtoseethe detail. 

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