ECO 202 Week 4 Assignment

ECO 202 Week 4 Assignment | Southern New Hampshire University

4-2 Simulation Discussion: Monetary System

NOTE THAT A CUSTOM RUBRIC IS USED FOR THIS DISCUSSION.

The Federal Reserve controls the money supply through monetary policy actions.

For this discussion, first play the simulation game Chair the Fed (on the Federal Reserve of San Francisco website). You may play the simulation as many times as you wish.

In your initial post, include an image of your simulation report. (See Module Four Simulation Discussion Screenshot Instructions.) Then address the following:

·         Share your experience as the chair of the Fed, addressing the challenges you faced and how you dealt with them. How did your changes to the federal funds rate affect the unemployment rate in your simulation? Explain the relationship using information from the textbook.

·         How did your changes to the federal funds rate affect the inflation rate in your simulation? Explain the relationship using information from the textbook.

In your responses, comment on at least two posts from your peers that had different outcomes from your own. Compare and contrast your experiences in the simulation. If you had any issues accessing the simulation, you can still provide constructive critique of your peers’ outcomes. Research current levels of the federal funds rate, inflation, and unemployment and recommend monetary policy actions that would help your peer.

To complete this assignment, review the Module Four Simulation Discussion Guidelines and Rubric.