In this chapter, you will learn about how money and the banking system is important to financing businesses. After you have read Chapter 16, please use the topic below as a starting point for class discussions, but please feel free to generate and initiate your own topics, including any questions or comment you may have for the concepts and content of this chapter.
At a minimum for every chapter, you need to submit at least one primary discussion posting(s) in response to the instructor’s topic or a new topic initiated by another student. You also need to submit at least one secondary posting(s) commenting on other students’ postings. Please note that initiating a new topic is classified as a primary posting. In the subject line of your posting, please indicate whether it is primary, i.e. initiating a new topic, responding to the instructor’s topic or to a new topic initiated by another student, or secondary, i.e. commenting on other student’s postings.
1. Please read the chapter-opening case “Where Did All the Money Go” on page 513 and answer the following questions: Do you think the current fiscal policy adopted by the Federal Reserve is helping the economy? What would you differently to get the US economy back on track for economic growth and reduce the US deficit? Where do interest rates go from here? Should the Fed reduce or increase interest rates? Explain.