Q1. What is the difference between fiscal policy and monetary policy? Who is responsible for setting the policies fiscal policy and monetary policy? Provide the links to official websites for Canada's Monetary Policy and Fiscal Policy.

Fiscal Policy:

Monetary Policy:

Q2: List and describe the Bank of Canada's four main areas of responsibility?

Q3: What are the key monetary policy tools employed by the Bank of Canada? How are they implemented to combat inflation and recession/unemployment?

Q4. The Bank can influence interest rates and the money supply through the following means:The Target overnight rate, Open market operations, Drawdowns and redeposits. For each, summarize how each of these are implemented.

Target overnight rate:

Open market operations:

Drawdowns and redeposits:

Q5. How is it that a government creates a budget deficit, budget surplus, and balanced budget? How does this (the budget) contribute to the national debt?

Q6. How does fiscal policy affect the economy?

Q7. List and explain the challenges of implementing government policy.

Q8. Under the following scenarios, how might fiscal policy and the monetary policy be implementedduring different stages of the business cycle?

Trough

Fiscal Policy:

Monetary Policy:

Peak

Fiscal Policy:

Monetary Policy: