ECN

Economics 211 Macroeconomic Principles

Exam #2 Due date: 10 April 2017

. A paper returned late, but on or before 17 April 2017, will be

worth 75% credit. No paper will be accepted after 17 April 2017.

Name _______________________________

Instructor: Brian B. Young

The value of this exam is 100 points. Please show your work where appropriate!

Paper

50 points

Please use a word processor to submit the paper. Be sure to put your group name on all submitted work so you

may receive proper credit. Good luck!

Meet with the other members of your group (group assignments were mailed to your

maricopa.edu Gmail accounts) and produce a five- to ten-page paper entitled “Innovations in

Monetary Policy Tools since the Financial Crisis of 2008.” Your paper should include such topics

as

 required reserve ratio,

 discount rate,

 open market operations,

 maturity extension,

 interest on bank reserves,

 quantitative easing, and

 fixed-rate overnight reverse repurchase (reverse repos) agreements.

You should, also, address how the size and the composition of the Fed’s balance sheet have

changed over the past seven years and the implications for open market operations as a policy

tool when the Fed has such a large balance sheet, i.e., when banks have such large quantities of

reserves.