Federal Reserve policy, economics homework help

Instructions

  1. Review the Case for Analysis: The Chairman’s Quandary on page 361 in the textbook, Economics for Managers.
  2. Review the information available on the following websites:
    1. Money, Interest Rates, and Monetary Policy:http://www.federalreserve.gov/faqs/money-rates-policy.htm
    2. Currency and Coin: http://www.federalreserve.gov/faqs/currency-coin.htm
    3. Monetary Policy and Bank Lending: http://www.nber.org/chapters/c8334.pdf
    4. Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory: http://qje.oxfordjournals.org/content/115/1/147.short
    5. The Federal Reserve in the 21st Century:http://www.newyorkfed.org/education/fed21/
  3. Use these sites to answer the following questions:
    1. Summarize the recent policy of the Federal Reserve concerning the level of interest rates and the reasons for this policy. Do you agree with this policy? Why or why not?
    2. How does this policy affect the supply of and demand for products and services?
    3. What problems can arise when interest rates are kept very low for an extended period of time? Please include historical examples (including at least one biblical example) of the impact of low interest rates and their effect on the economy.
    4. d. Using the International standard Bible encyclopedia (http://www.studylight.org/enc/isb/), give an example of a currency used in the Bible and explain how the currency was used and how the supply of this currency may have affected the economy of the times.
  4. You must incorporate a minimum of three sources in addition to the text in this assignment. Your three sources may include scholarly sources, credible newspapers, trade journals, or websites listed here. Be sure to use OCLS to find these sources.

Your entire assignment should be APA formatted.

 
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