Assignment:
Participation Expectations.
In order to be eligible for the maximum score on this graded activity, the initial response to the discussion questions must be at least 200 words and be suitably supported (citations) with material from our our assigned textbook readings. Subsequent comments to other students must "add value" to the discussion and should be approximately 100 words each in order to be considered "substantive" and therefore eligible for the maximum score
APA FORMATTING NOT NEEDED
: Please keep the two post separate
Discussion Post #:1
Federal Reserve Bank Policy during the 2007-2008 Recession
From 2007-2010, the Federal Reserve Bank (the Fed) used many practices that had never before been seen from the central bank of the United States.
Discuss the some of the actions that the Fed took during this period. Such as:
• How the Federal Reserve's lending practices changed during this period.
• What did the Federal Reserve do to support firms deemed "too big to fail."
Do you believe these actions were necessary to avoid a collapse in the financial system? Support your opinion with information from the textbook or external source(s).
Reference: Chapter 12, section 12.4: Bank Failures During the Great Recession, Chapter 14, section 14.4: Monetary Policy in the 2000s, and Conclusions section at the end of the Chapter 14
Guided Response: Review the posts of your classmates and respond to at least two of your classmates by agreeing or disagreeing with their opinions on whether the Federal Reserve actions were necessary to avoid the collapse of the financial system.
Discussion Post # 2:
The Effect of Bank Lending on the Economy
In conducting expansionary monetary policy, even if the Federal Reserve Bank is providing reserves to the banking system, during a recession or during periods of slow economic growth, banks may choose not to lend out their reserves when interest rates are low and potential borrowers look risky. This is known as a "credit crunch". Explain how a credit crunch affects economic growth. Specifically, answer these questions in your post:
• How does a credit crunch affect consumer spending and business investment?
• How does a credit crunch affect aggregate demand, GDP, and unemployment?
Reference: Chapter 14.1 Is Monetary Policy Effective? and section 14.3: Domestic Sectoral Effects.
Guided Response: Review the discussion board posts of your classmates. Respond to at least two of your classmates with responses that allow them to extend their thinking. Support your ideas with concepts found in the assigned reading
Carefully review the Discussion Forum Grading Rubric for the criteria that will be used to evaluate this Discussion Thread.
Respond
Two Separate Discussion Post
Must Complete both and use the classroom text as well