D+Q'S+ECO+372+Week+3 - Week 3: Discussion Questions

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Week 3: Discussion Questions     1 What are the uses of money and how do banks create money? 2. Is monetary policy conducted independently in the US and is the intended effect always achieved? Why or  why not? 3. What is the difference between contractionary and expansionary monetary policy? What are the pros and  cons of using expansionary and contractionary monetary policy tools under the following scenarios;  depression, recession, and robust economic growth? Which do you think is more appropriate today? 4. What happens to the money supply, interest rates, and the economy in general if the Federal Reserve is  a net seller of government bonds? Then describe what happens to the money supply, interest rates, and the  economy in general if the Federal Reserve is a net buyer of government bonds.  How do these policies  impact the firm or industry you work in? 5. What are the advantages and disadvantages of adjustable-rate versus fixed-rate mortgages? Identify the 
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D+Q'S+ECO+372+Week+3 - Week 3: Discussion Questions

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