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Macro Questions (2)

 

PART 1: The following passage is from Keynes’ letter to President Roosevelt. Take the statement and reword it in your own words.  (Make it as easy to understand as possible.)  Each statement should be no more than 20 words.

 

 

 

“It is a most misleading thing to stress the quantity of money, which is only a limiting factor, rather than the volume of expenditure, which is the operative factor.”

 

 

 

PART 2: Find a recent newspaper editorial on monetary policy, interest rates, or macroeconomics and give the title of the article, date, source and columnist name if applicable.  Then do the following:

 

a.         Summarize the article in 50 words or less.

 

b.         Take a statement in the article that you consider a positive statement.  Reword in if, then form.  The statement should be no more than 15 words.

 

c.         Find one normative statement in the article OR tell what you think are the normative implications of the article.

 

d.         Do you think it takes an activist stance or nonactivist stance?  You may justify your response either by quoting one or several statements directly from the article (Put in quotation marks.) OR by writing a short paragraph (50 word-limit) justifying your response.

 

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