What are the basic objectives of monetary policy?
Q5.Paradox of Thrift
An interesting paradox called the “Paradox of Thrift” arises when households become concern about their future and attempt to increase their saving. As a consequence of such action the overall economy will suffer. Explain. Do you agree with this assessment?
Q6.Objective of Monetary Policy
What are the basic objectives of monetary policy? Comment on the cause-effect chain through which monetary policy is made effective. What are the major strengths of monetary policy?
Q7. Limits to Long-term Economic Growth
What are the limits to the U.S. long-term economic growth? Is there anything that our government can do to address these limits, or would it be a bad idea to try?
Q8. Course Reflection
What is the most important economic principle you learned from the course? How did this information improve your understanding of macroeconomics, and what is its application in the macroeconomic environment?
Requirements: 200 words per question.