ECO 372: Week 4 Individual Assignment
DUE: Saturday, January 7th, 2012
Resources: Ch. 28 of Economics
Prepare a 1,050- to 1,400-word paper in which you complete the following Web Questions:
· Web Question 1 (Below)
· Web Question 2 (Below)
Analyze how the money multiplier facilitates creating money by the banking system.
Format your paper consistent with APA guidelines.
Web Questions 1 & 2
1. Go to the Federal Reserve’s home page at www.federalreserve.gov.
a. Who is the chairman of the board? For how long has he or she served?
b. Who are the governors of the board?
c. The site publishes a short biography for each governor. What experiences and/or degrees do all members have? What experiences and/or degrees differ among members?
2. Go to the New York Fed’s Web site at www.ny.frb.org/research/current_issues/ci2-7.pdf to read “The Yield Curve as a Predictor of Recessions.” Then answer the following questions:
a. Why should the steepness of the yield curve be a predictor of recessions?
b. Is the economy more likely to be headed for recession if there is a standard yield curve or if the yield curve is flat or inverted? Explain your answer.
c. What is the current yield curve spread? What does this mean for future economic activity?