DQ-5: Monetary System

DQ-5: Monetary System

1) Is the US Dollar tied to a silver or gold reserve system? Look up some historical timeline related to this matter.

2) How does the Fed decide whether to use expansionary or contractionary monetary policy? Write up two reasons.

3) In your opinion, how does the Fed decide how much is enough in terms of money supply and interest rates? Write up two reasons.

Use as many economic principles (from the textbook and other sources) as you can in answering the questions.

As a guideline, each of the 10 points will be derived from the following:

Post your answer (300-400words) to the posted DQ responding to the matter asked, instead of repeating the question or not attending to the question. Substantive answers include making comments using concepts found in the assigned reading materials or offering examples from your experience. Hence merely providing a brief “yes, I agree” or “no, I do not agree” postings are not adequate posts
Write in correct grammar; any errors will translate to a deduction in points.
Check for the spelling; any errors will deduct points.
Your responses must be substantive that include your own thoughts, supported with research (at least two external sources other than textbook, and you must quote these sources).
You get one point when you respond to one of your classmates’ posts, also with substantive comments (100-200 words).
One more point when you respond to another classmate’s post (100-200 words).
One point for collaboration. It is intended that your involvement in discussions be of a collaborative nature. Collaboration spirit is quite different from confrontation.
Deadline: due date for each DQ will be on Monday night 11.55pm, but you are free to make your comments prior to Monday night. One point will be deducted for each day of late submission.
Creativity: offer a creative solutions or ideas or impact on other fields, in addition to the obvious socio-economic impacts of each topic.
Offer a future recommendation or alternative options for the future with regard to the topic in question.

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