3.05_Econ_template_policy2023 - Protected View . Saved to this PC v LO Sofia Layout References Mailings Review View Help net can contain viruses. Unless you need to edit. it's safer to stay in Protected View. Enable Editing Lesson 3.05: The Fed and Monetary Policy Analysis and Comparison to Fiscal Policy (this is a two-part assignment) Step 1: Analyze each scenario. Answer the questions in complete sentences, free of mechanical errors. Scenario A Hint: In this s the economy is in bad shape. College graduates are moving back Why would the Federal Reserve (the Fed) address the scenario in with family in record numbers. with expansionary policy? Explain. They are waiting longer than previous generations to buy homes Review Lesson 3.05 page 2 and 3 (flip charts) and start families. Data show downward trends in new home building, mortgage applications, and the birthrate. Multiple markets are Explain why the Federal Reserve (the Fed) would lower the complaining of falling demand. A interest (discount) rate in this scenario? national supplier of home goods permanently shut down. The media Review Lesson 3.05 page 2 and 3 (flip charts) is calling babies born today part of the "baby bust generation." Economists predict future school closings and labor shortages. Why would Congress decrease taxes in this scenario? Review Lesson 3.05, page 4 (chart) Fo W3.05_Econ_template_policy2023 - Protected View . Saved to this PC v O Layout References Mailings Review View Help et can contain viruses, Unless you need to edit. it's safer to stay in Protected View. Enable Editing Scenario B Why would the Fed address this scenario with contractionary Reports of price increases for policy? Explain. everyday goods begin to dominate Review Lesson 3.05 page 2 and 3 (flip charts) the news. People are complaining that their wages and salaries are not keeping pace with the cost of living. Why would the Fed address this scenario by increasing the Most people being interviewed have interest rate? jobs, and the national unemployment rate is low. Review Lesson 3.05 page 2 and 3 (flip charts) However, many commonly remark that they are looking for second jobs or jobs that pay more because basics like food and clothing cost Why would Congress decrease spending in this scenario? them so much more than a year Review Lesson 3.05, page 4 (chart) ode W3.05_Econ_template_policy2023 - Protected View . Saved to this PC v LO Sofi sign Layout References Mailings Review View Help he Internet can contain viruses, Unless you need to edit, it's safer to stay in Protected View. Enable Editing them so much more than a year Review Lesson 3.05, page 4 (chart) ago. Step 2: Which type of policy, fiscal or monetary, do you think is more effective in today's U.S. economy? Fiscal? Monetary? Or a combination of the two? Please explain your answer. Hint: Keep in mind that we are experiencing inflation because prices have skyrocketed since the pandemic. Write at least one complete paragraph (5-7 sentences). Review Lesson 3.05, page 4 (chart) dictions: On Focus W