Discussion
Write a 75-100word response to each of the bulleted questions below Each question must have its own response and meet the minimum word count
1
What are the uses of money? How do commercial banks and Federal banks create money?
2 Is monetary policy conducted independently in the United States? Explain your answer
3 Is it important for monetary policy to remain independent from all parties? Why or why not?
4 What is the difference between contractionary and expansionary monetary policy?
5 Which type of policy is more appropriate today and why?
6 What is the intention contractionary and expansionary monetary policy under a depression, recession, or robust economy?
7 What happens to the money supply, interest rates, and the economy if the Federal Reserve is a net seller of government bonds? What happens to the money supply, interest rates, and the economy if the Federal Reserve is a net buyer of government bonds? Why would the government implement a stimulus program into the economy?
8 Rank the factors that contribute to the discount interest rate from most important to least important Justify your rankings Explain the degrees of credibility