Some questions on government and federal policy?

1. You are worried that the economy is facing a downturn. What actions can you take using the Federal Reserve?



2. The downturn continues. You call the president on the phone. What fiscal policies do you recommend?



3. Those policies worked so well that the economy is suddenly in a boom! How can you and the president work together to slow down this growth and prevent the economy from overheating?



4. It appears that these economic busts and booms are coming because of the actions of one of the nation's largest trading partners. What foreign policy tools can the president and Congress use to convince that nation to change its policies?Some questions on government and federal policy?1. Declare war against the Federal Reserve.

2. Declare a war against the downturn.

3. Declare a war against the recovery

4. Declare war against the nation.



Seriously? I'm not an economist, but the federal government could reduce the Fed rate, if it's not at 0% already or lower the required reserve ratio, which would tend to increase the money supply. That's monetary policy, I believe. It would tend to put more money in circulation.



Fiscal policy concerns taxing and spending, I believe. So it could either cut taxes or increase federal spending to give US manufacturers something to do, and increase employment. There is a tension between those two techniques - it's hard to do both at once. You really need to look at the facts.



The economy's never been hot enough for me. But if the government wants to slow down economic growth it can cut government purchases, raise taxes, or decrease the money supply.



Start trading with someone else? I don't know. But there could be some kind of treaty or accord.



BUT I AM NOT AN ECONOMIST! and I may be totally wrong about some things here. It's been a long time since I studied the subject.
Some questions on government and federal policy?
Many colleges offer courses on business cycles. What we are going through is normal and will pass when we enter into the next stage of the business cycle. Be patient. This is not the end of the world.