Discussion:
•Do you feel that the interest rate that is "set" by the Federal Reserve is too low?
•Provide an argument why interest rates cannot go lower - and need to be raised during the next Board of Governors meeting.
•How would you advise the board, as Chairperson, to go about implementing a raise in the interest rate?
•Explain and discuss this interest rate that you're trying to raise.
•What are the feedback effects of this interest rate increase on the US economy?
•Look at this in terms of the Aggregat Expenditure Equation - C(Household Consumption), I(Investment), G(Government spending), NX(Net Exports).