Why does the Federal Reserve engage in expansionary monetary policy?
The Federal Reserve (Fed) engages in monetary policy when they wish to increase the money supply. Reasons for increasing the money supply may vary, but expansionary policy is typically done to jump start the economy. When there is a lack of spending, or investing in the economy, the Fed will engage in expansionary policy to expand the economy.
What is the significance of the Whiskey Rebellion?
The Whiskey Rebellion was a rebellion in Western Pennsylvania during the early years of Washington's presidency. To try and curb national debt, Secretary of the Treasury Alexander Hamilton introduced a tax on whiskey, which directly affected farmers in the area who used whiskey as a source of currency to exchange goods. These farmers rebelled presenting a test for Washington's presidency. Would he strike down the rebellion, displaying federal power and giving legitimacy to the new form of government or would he fail to take action. Washington's response to send in troops shows the legitimacy of the new government and commitment from the federal government to maintain authority.
What is the profit maximizing point for a firm?
Where marginal revenue (MR) equals marginal cost (MC).