Action research is a form of inquiry in which a problem is identified and a series of actions are planned as a way of gaining deeper understanding of the range of possible solutions. The purpose of this discussion is to promote reciprocal sharing of your final action research report with others in your community of practice (your peers in this course) who would value the knowledge you have gained through the action research process.

There are two parts to this discussion.

Part 1: Share the process and results of the action research planned in EDU671 and conducted in EDU675. At a minimum:

• Describe the purpose of your study by writing a statement that completes the following sentence, “The purpose of this study is to…” (two to three sentences).
• Post your research question(s) – Include definitions of key technical terms, if necessary. (one to three sentences)
• Outcomes/Results The “so what?” of your study—Answers to your research questions. (three to four sentences)
• Assuming you would conduct another cycle of this study, what specific modifications or adjustments would you make, and why? (three to four sentences)
• Explain why this study is important to the school and the students. ( two to three sentences)
• Explain why this study is important it is important for teachers and other educational practitioners to become researchers of their own practice. (two to three sentences)

Part 2:

• Attach a link to your electronic portfolio(Pathbrite).
• In one paragraph, reflect on your experience with the redesign of the Week Three Assignment in terms of challenges you encountered and how you overcame those challenges. Also include how your assessment promotes learning and innovation skills and how it could be used as a tool for ongoing evaluation of student progress. 

Use the PowerPoint Template as a guide to help create a high quality presentation.

Alternate: If you do not have your own completed action research to utilize, you will take a slightly different approach to complete this discussion: Using the Ashford University Library, locate and analyze a peer-reviewed educational action research study. You will follow the same guidelines in Part 1 of the discussion to create a presentation to share in the discussion forum. An added part to your presentation is reference to the article.

Guided Response: Respond to at least two peers. In your replies, take on the role of a teacher listening to the presentation. Ask questions about your peer’s action research study and offer an additional resource for consideration that supports an alternative viewpoint. Though two replies is the basic expectation, for deeper engagement and learning, you are encouraged to provide responses to any comments or questions others have given to you, including the instructor. Responding to the replies given to you will further the conversation and provide additional opportunities for you to demonstrate your content expertise, critical thinking, and real-world experiences with this topic.

Carefully review the Discussion Forum Grading Rubric for the criteria that will be used to evaluate this Discussion Thread.

 

1. (15 pts.)

Suppose the Fed wants to raise the nominal interest rate. Explain the three available mechanisms the Fed can use to achieve this goal. In your answer, use a graph of the money market to show how the Fed’s action translates into a higher nominal interest rate.

2. (10 pts.)

a. (6 pts.)

Explain the difference between the three Fed discount window programs.

b. (4 pts.)

Why does the Fed set the discount rate above the Fed Funds rate?

3. (25 pts.)

Suppose the Fed decides to sell $14 billion in Treasury bonds. Assume that the reserve requirement is 8%, banks hold 4% in excess reserves, but the public holds no cash.

What is the total increase or decrease in the money supply which would result from the Fed’s action? Explain your answer, and show your calculations.

4. (50 pts.)

Assume the public in the small country of Harvardia does not hold any cash. Commercial banks, however, hold 5% of their checking deposits as excess reserves, regardless of the interest rate.

a. (5 pts.)

Consider the balance sheet of one of several identical banks:

ASSETS LIABILITIES & NET WORTH
Reserves $ 400 Checking Deposits $2,000
Loans $1,600 Net Worth $ 0

What is the required reserve ratio?

b. (10 pts.)

If the total money stock (supply) is $100,000, find the total amount of reserves held in the banking system. Show your work. Use a diagram to show what the money supply curve looks like for this economy, fully labeled.

c. (10 pts.)

The Harvardia Central Bank decides that it wants to cut the money stock in half. It is considering an open market operation. How many dollars worth of bonds should the Central Bank buy or sell? Assume that excess reserves are 5% and the required reserve ratio is what you found in part a. Show your work.

d. (25 pts.)

Beginning from the money market equilibrium that prevailed before the open market operation, explain the effect of the Central Bank’s policy on the equilibrium interest rate. Will the interest rate change more if the money demand curve is steeper or flatter? Explain with reference to one well-labeled diagram.

(Hint: On one diagram, show both a steep and a flat money demand curve, along with one money supply curve. Then show what happens along the two curves as the money supply changes. To explain your result, think about what a steeper or flatter money demand curve implies about money demand.)