Analyzing Interest Rates

Anonymous
timer Asked: Oct 4th, 2018
account_balance_wallet $20

Question description

The Federal Reserve has control over the nation’s monetary policy. Through adjusting the required reserve ratio, buying and selling government bonds on the open market, or adjusting the discount rate, the Fed can influence interest rates and the money supply in the country. When we talk about interest rates, it’s important to distinguish between long-term and Short-term interest rates. Short-term interest rates are directly affected when the Fed changes its federal funds and discount rates and are for loans made for short periods. long-term interest rates are set by market forces. Lower long-term interest rates encourage investment by businesses and consumers because the cost of paying back the money over a long period is low. Keep this distinction in mind while you complete the following activity.

Part A

Considering the current state of the economy and what you know about monetary policy, do you think the Federal Reserve should increase interest rates, decrease interest rates, or keep interest rates constant? Why?

Part B

Using an Internet search engine, find a website or an article that contains an editorial or opinion piece that shares your opinion and copy the URL in the space below. Keep in mind that it might take you some time to find a good article, so don’t automatically take the first one you find.

Part C

List three main points from the source you found that explain the author’s reasoning.

Part D

Based on what you have read, what bias might the author bring to his or her opinion?

Part E

Using an Internet search engine, find a website or an article that expresses the opposite to your opinion and copy the URL in the space below. Keep in mind that it might take you some time to find a good article, so don’t automatically take the first one you find.

Part F

List three main points from the source you found that explain the author’s reasoning.

Part G

Based on what you have read, what bias might the author bring to his or her opinion?

Putting It All Together: The Debate

  • Write 10 lines of dialogue each for two characters (20 dialogue lines in total). The dialogue must be economics related and relevant.
  • One character must take your viewpoint, and the other character must take the opposing viewpoint.
  • Script each character’s rationale for why the specific action they believe in should be taken.
  • Include each character’s main opposition to the opposing viewpoint.
  • Ensure that each character questions the other about points of perceived bias, with each character responding to the other’s question.

Tutor Answer

DrRight
School: Duke University

At...

flag Report DMCA
Review

Anonymous
Awesome! Exactly what I wanted.

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors