Unit 3 Week 13 Problem Set - Fiscal & Monetary Policy 1. John Keynes suggested that the government should... Government should be involved in the economy 2. What institution(s) carry out fiscal policy? 3. The two tools of Fiscal policy are... a. b . 4. Expansionary Fiscal Policy to increase the money supply will do the following: Inflation/Price Level: INCREASE DECREASE Unemployment rate. INCREASE DECREASE 5. List at least one problem with fiscal policy: 6. The THREE tools of Monetary Policy are ... a. b . C . 7. What institution carries out monetary policy? 8. You are chairman of the "Fed" Jerome Powell. What would you recommend to help fix an economy that is experiencing high unemployment? (Make sure to list recommendations for all three tools). 9. You are still chairman of the "Fed" Jerome Powell. What would you recommend to help fix an economy that is experiencing high inflation? (Make sure to list recommendations for all three tools). 10. What is the most widely used and effective tool used in monetary policy by the "Fed