ECON 201 Principles of Macroeconomics – Discussion Week 5

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Must post first.
Graded Discussion Week 5
Please note that if you edit your initial response (Original Post), you will not get credit for the Original Post. The discussions are set up as “Must post first”.
You are expected to make your own contribution in the main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor. Your original post is due Thursday, September 19th and your two response posts are due Sunday, September 22nd. Your original post should be at least 100 words. You are also required to post value-added responses to at least two classmates. Response posts should also be at least 100 words each. 

Go to www.federalreserve.gov/FOMC/default.htm, the official Wed site of the Federal Open Market Committee (FOMC) of the Federal Reserve Board. Scroll down the page and choose the link to one of the most recent statements from FOMC meetings.
In your initial response to the topic you have to answer all questions:

  1. Define the Federal Funds Rate. What is the current Federal Funds Rate?
  2. Define the Federal Reserve Discount Rate. What is the current Federal Reserve Discount Rate?
  3. What are the factors cited in this statement that determined the FOMC’s decision of changing (or keeping constant) its target for the federal funds rate?
  4. Does the Fed have control over the federal funds rate and over bank reserves? If so, can the Fed control both simultaneously?
  5. Reflection – the students also should include a paragraph in the initial response in their own words, using macroeconomic terminology, reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.

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