Principles Of Macroeconomics

Week 4 – Discussion 2

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Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

The Federal Reserve’s Monetary Policy and Its Goals [WLOs: 2, 3, 4] [CLOs: 2, 4]

By law the Federal Reserve is required to monitor unemployment and inflation. Respond to the following components:

• How does the Federal Reserve accomplish these goals?
• What are the pros and cons of using contractionary and expansionary monetary policy tools under the following scenarios: recession or depression and robust economic growth?
• What tool is the most appropriate among the different monetary policy tools available today?

Your initial post should be a minimum of 300 words.

Guided Response: Respond substantively (a minimum of 100 words) to at least two of your classmates’ posts. What is different or similar between your post and your classmates’ posts? What advice could you offer your classmates? Substantive responses use theory, research, and experience or examples to support ideas and advance the class knowledge on the discussion topic.