AB 204 Week 7 Discussion 1 | Assignment Help | Kaplan University

AB 204 Week 7 Discussion 1 | Assignment Help | Kaplan University 

Unit 7 Discussion Topic 1

How Money Affects the Economy

The Discussion topics deal with money, the Federal Reserve System, and the effects of money growth on the rate of inflation. The specific discussion areas include the various forms and uses of money, the roles of the Federal Reserve System, money supply, money demand, monetary policy instruments, costs of inflation, and inflation as a tax.

Read Chapters 16 and 17, and remember to include references and links to the websites that you feel are important contributors to your posts (comments).

The Federal Reserve may increase or decrease the money supply depending on the economic condition.

a.    What policy instruments does the Fed use for the monetary policy?

b.    What are the pros and cons of using expansionary and contractionary monetary policy tools under the following scenarios: depression, recession, inflation, and robust economic growth? Which do you think is more appropriate today?

 

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