Questions of the Day
1930s: The Incumbent

.5  What are the two "types" of macro policies that the government could have used to get the economy out of the Depression?

1. What was the "rule" that the government was to follow with regard to its spending and taxing policies? 

2. How does an increase in government spending crowd out the private sector?

3. What was the gold standard?  How did this solve the trade imbalance problem?

4. What is the quantity theory of money? What did this "prove" was the impact of an increase in money supply?

5. Did monetary forces cause the Depression?

6. Explain Friedman's quote: "Inflation is everywhere and always a monetary phenomenon."

Extra

7. Evaluate the goals of the FED in the 1920s and early 1930s. Why might the Fed have pursued these goals? What alternative goals might the FED have pursued?