ECONOMICS

7/10/23, 8:16 PM Case – ECO220 Principles of Economics (2023MAY22FT-1)
https://tlc.trident.edu/d2l/le/content/197707/viewContent/4965321/View 1/2
Module 4 – Case
MONEY, MONEY, MONEY
Assignment Overview
In this final Case Assignment, we will be answering questions about
types of money, how the Fed uses money, and what happens when
there is money but it is not being spent. This is a multi-part
assignment, so make sure that you have addressed each question
or topic. The best way to approach this assignment is to prepare
your responses in outline form following the order of each
question/topic. This will help you keep track of your responses.
Review this brief introductory video, Macro 4.1- Money Market and
FED Tools (Monetary Policy), which provides a high level overview
of the Fed and how it influences the money market.
Case Assignment
Submit a 4- to 5-page paper that addresses the following questions.
Be sure to use references within the paper to support your
answers.
Are credit cards or debit cards money? Explain your answer.
“When the Fed makes an open market purchase of government
securities, the quantity of money will eventually decrease by a
fraction of the initial change in the monetary base.” Is the previous
statement correct or incorrect? Explain your answer.
Monetary policy is action taken by the Fed to influence the level of
real GDP. Suppose the Fed wants to increase the money supply.
  Listen 
7/10/23, 8:16 PM Case – ECO220 Principles of Economics (2023MAY22FT-1)
https://tlc.trident.edu/d2l/le/content/197707/viewContent/4965321/View 2/2
Privacy Policy | Contact
What three tools could the Fed use to achieve this goal? Be
specific in your answer and discuss the implications of this policy.
Assignment Expectations
Use concepts from the modular background readings as well as
any good quality resources you can find. Cite all sources within the
text and provide a reference list at the end of the paper.
Length: 4–5 pages double-spaced and typed in 12-point Times New
Roman font.
The following items will be assessed in particular:
Your ability to understand an application of monetary policy.
Some in-text references to the modular background material. APA
formatting is recommended. Use this site from the Purdue Owl if
you need help with APA: https://tinyurl.com/3rnc5vt.
The essay should address each element of the assignment.
Remember to support your answers with solid references, including
the Case readings.
Upload your paper as a .docx file to the Case 4 Dropbox when it is
completed