At issue in this area of study is monetary policy and the operation of the The Federal Reserve (the Fed) in managing monetary policy. After reading the chapter Money and Banking as well as Monetary Policy and Bank Regulation, choose one of the following three questions to discuss: 1. Explain why the Fed would pursue an expansionary monetary policy and how we would expect an expansionary monetary policy to affect your ability to buy a house. 2. The fluctuations of global oil prices is troubling for our economy. 3. What effect, if any, would a decrease in oil prices have on inflation? What would the Fed likely do to address any effects (from declining oil prices) and how might this affect your ability to buy a house? In either case, make sure your answers are specific enough to indicate your understanding of these concepts, including current market information and statistics to support your point of view.
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