Question # 9

a) What is fiscal policy, and who sets it? What is meant by the cyclically balanced budget fiscal policy? What problems exist with this type of policy?

b) What is monetary policy, and who sets it? What is the inflation target? What is the required reserve ratio in Canada? What is "moral suasion" as it applies to monetary policy?

c) What is "America's Extraordinary Gamble"? *Referring to the Economist magazine article I asked you to read*