ECO discussion question 1 & 2

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1. Monetary Policy and Inflation” Please respond to the following:

  • From this week’s e-Activity, examine two methods that the Federal Reserve can implement to support a stronger economic recovery. Provide support for each method in your response.
  • Identify one way that the Federal Reserve’s actions have influenced a recent decision that you have had to make. Explain the basis for your decision.

2.”Money” Please respond to the following:

 

  • Given our current economic situation, determine the steps that the Federal Reserve should take to help stabilize our economy.
  • Explain how each of the following variables will be affected by proposed steps that you have identified in the first part of the discussion: money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your response.

 

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