1. Define fiscal policy. Define monetary policy.

2. Who is responsible for fiscal policy?

3. Who is responsible for monetary policy?

4. What are the tools used to implement fiscal policy?

5. What are the tools used to conduct monetary policy?

6. Explain the fiscal policy actions used to stimulate the economy during a recession. What is

this type of fiscal policy called?

7. Explain the monetary policy actions used to stimulate the economy during a recession. What

is this type of monetary policy called?

8. Explain the fiscal policy actions used to stabilize the economy in times of inflation. What is

this type of fiscal policy called?

9. Explain the monetary policy actions used to stabilize the economy in times of inflation. What

is this type of monetary policy called?

10. Define the federal funds rate.

11. Explain theZero Lower Bound problemregarding Monetary Policy.

12. When Monetary Policy runs into the ZLB (Zero Lower Bound) problem, does that give more or less importance to fiscal policy to solve our economic downturns?

13. What are the common goals of both fiscal and monetary policy?