"Banking and the Money Supply"
Please respond to the following:
- Explain in simple terms (yet covering all important steps) how banks create money.
• Discuss the Fed's tools for controlling the monetary supply and how well you believe they work. Provide examples to support your response.
"Monetary Theory and Policy"
Please respond to the following:
• Compare how changes in the money supply affect aggregate demand in the short run against how it affects aggregate demand in the long run.
• In terms of monetary policy, discuss whether the Fed should focus on the interest rates in the short run or on the supply of money in the long run. Explain your rationale in your response.
"Active versus Passive Policy"
Please respond to the following:
- Discuss whether you believe an active policy or a passive policy is best. Explain your rationale with your response.
• Discuss how expectations impact policy and the best way to mitigate that impact. Provide specific examples to support your response.
"Stabilization and the Phillips Curve"
Please respond to the following:
• Discuss which approach you believe is the best way to stabilize the economy: a discretionary policy or a monetary rules approach. Explain your rationale in your response.
• Assess the theory and evidence behind the Phillips curve to determine whether you agree or disagree with Phillip's reasoning. Explain your rationale in your response.
"Summary"
Please respond to the following:
- Discuss the single most surprising or interesting thing you learning in this course, as well as what made it so.
• Summarize the key points made in this class as you would to a friend who was considering taking the course. Make sure you focus on the points you personally found to be key.
"Application"
Please respond to the following:
- Discuss how you will use the lessons learned in the class in your current or future career.
• Discuss how someone (perhaps yourself?) who is not going into economics could use the information learned in this class. Provide specific examples to support your response.
Discussion 1: "Asymmetric Information." Please respond to the following:
• In your opinion, discuss when it makes sense to forego purchasing car insurance (assuming the state did not require it). In your answer, use moral hazard and risk aversion to describe your decision.
Discussion 2: "Public Goods." Please respond to the following:
• Imagine the lake in your small community, which brings lots of tourist dollars to the community, becomes polluted. In order to keep tourists coming, the government levies an equal payment from each resident in order to cover the cost of the clean-up. Discuss two (2) pros and two (2) cons to this solution. Are you in favor of the government's action?
Discussion 1: "Behavioral Economics." Please respond to the following:
• Describe how the limited self-interest of humans impacts their ability to maximize their welfare. If you project into the future, what effects can be foreseen on future generations?
Discussion 2: "Application" Please respond to the following:
• Provide an example of a recent occurrence when you either procrastinated about a purchase or impulsively made a purchase. Discuss what made you behave that way or describe the circumstances that caused you either to procrastinate the purchase or impulsively make the purchase.
• Using what you now know about the field of behavioral economics, describe the new insight you have on the behavior you described above.
- Describe how the U.S. IRS can apply behavioral economics to entice individuals to pay their taxes and on time.
Discussion 1: "Course Wrap-Up." Please respond to the following:
- Imagine you are at a party. Explain how you would describe this course to the party-goers.
- Explain who you would recommend this class to and state why.
Discussion 2: "Course Wrap-Up." Please respond to the following:
- Discuss how the concepts of this course can be applied to your current or future work position.
• Discuss what concepts from the course you felt were most valuable.