Fiscal and Monetary Policy Federal Government Paper

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Fiscal and Monetary Policy Federal Government Paper

Part 1

Choose ONE current fiscal policy tool being implemented by the federal government or the California government. Explain the tool and explain the impact of the tool on the AD/AS model.

Part 2

Explain the current Monetary Policy path taken by the Federal Reserve Federal Open Market Committee (FOMC). In order to determine this, you will need to read the most recent minutes of the FOMC meeting. Explain their reasoning and the impact on the economy.

Use as many economic concepts and models to explain BOTH policies as possible. The assignment must be typed and at least one page description for each policy. Cite your sources.

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