The course text must be clearly used and referenced according to APA standards for this assignment. You are welcome to bring in additional scholarly sources also. Your work is to be 3-4 pages long and be primarily in your own words. All sources use must be referenced and cited – including the use of quotation marks for any direct quote.

Question #1

A) Say the economy is in recession and you are the newly hired Federal director of fiscal policy and have been given the job of creating policies for the next four years that will aid the economy in emerging from recession and beginning a course of healthy economic growth. Based on the assigned reading from the text and any additional scholarly sources you choose to draw from, describe what you will do to succeed at this task.

B) Here the requirements are the same as for A) above, except that in this case the economy is growing rapidly, inflation is rising, and your goal is to bring inflation and growth down to “normal” rates.

Question #2

A) List and explain the six properties of ideal 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.