Project #37800 - Unit 7 macro discussion

Budget $10

 

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). Respond to two of the following Discussion topics.

Topic 1: There are various forms and uses of money in the economy. Banks create money. What are the uses of money? What is the difference between commodity money and fiat money?

Topic 2: The Federal Reserve may increase or decrease money supply depending on the economic condition. What is the difference between contractionary and expansionary monetary policy?

Topic 3: In economics inflation is considered as a tax. There are also costs of inflation. What is the inflation tax, and how might it explain the creation of inflation by a central bank? Explain how inflation affects savings.

 

Subject Business
Due By (Pacific Time) 08/15/2014 05:00 pm
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