Essay Question #1: What is Keynesian Fiscal Policy? What is the difference between discretionary fiscal policy and automatic stabilizers? Why is this important?
Short Answer #1: How is money created? Give details about the relationship between the FED and the banking system and how money is created.
Short Answer Question #2: How does the Fed affect the Money Supply (three ways)? What do they mainly do, historically, to change the money supply?
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