Please use your own experiences and the knowledge you have gained from this week’s readings to answer the following topics and questions. You may also use information that you find in the textbook, AIU’s library or the Internet to support your discussion. Make sure you use economic concepts in your main contribution.
The Federal Reserve is responsible for managing the country’s money supply. Monetary policy affects the whole economy through interest rates. When the Fed increases the money supply, interest rates drop. When the Fed decreases the money supply, interest rates increase. This week you will discuss how you are affected by the Federal Reserve’s monetary policies. In your discussion, please consider the following questions or statements.
- Think about a recent purchase you made that required a loan, like a house, or a new car. Explain how you arrived at the decision to purchase. Then explain how the interest rate on the loan affected your purchase. For instance, were you able to purchase a higher priced item because the interest rate was low?
- Thinking deeper about your answers; how do interest rates affect millions of other buyers and their decisions, then how that affects the whole economy? Explain.
In your own words, post a response to the Discussion Board, and comment on at least 2 other postings. You will be graded on both level of engagement and the quality of the contribution to the discussion.
Discussion Board Reminders:
|Assignment Criteria||Proficient Descriptor||Points|
Quality of Main Post
27 Points Total
|Student’s main post meets or exceeds the following requirements
Response to Peers
24 Points Total
Support from Learning Resources
4 Points Total
|At least one post refers to course learning resources.||/4 pts.|
5 Points Total
|Response is well-organized, clear and free of grammatical and mechanical errors.
Posts demonstrate courtesy and respect for others.