Natalie scored a perfect 100% on her take home quiz on financing the government. I placed on the whiteboard and defined the terms "monetary policy" and "fiscal policy", and discussed how Natalie could incorporate in her lengthy essay the effectiveness of the Fed's monetary policy in the absence of the gold standard. Natalie then commenced her reading on fiscal policy and answered a number of questions on the study guide about "surplus" and "deficit " in federal spending. We last examined some bar graphs illustrating the relationship between the federal deficit and the federal debt. For homework, I assigned reading pages 598-600 and answering questions 4 &5 on the study guide. Natalie's first draft of the essay is due May 2nd.