Lots of food, many problems. It will be better in every meaningful way from life today. Many people will spend a lot of time trying to persuade everyone how much better life used to be. Slide 24 Aggregate demand management is the set of policies the government uses to try to keep the economy growing at as even a rate as possible. Monetary policy is attempts by the government to influence the rate of money creation by private banks.
Fiscal policy is the use of the government s taxing and spending powers.
Slide 25 Money is defined as a sufficiently widely accepted medium of exchange . Money is defined around liquidity , the ease with which an asset can be converted into the universally accepted medium of exchange. Microsoft stock is much less liquid, even though having it makes you wealthier than not having it. Banks create most of the money supply every time they lend money. Control over two interest rates , which are established by vote during Fed meetings a.