In your initial response to the topic you have to answer all questions: 1. Discuss the effect of monetary policy on inflation. To what extent can monetary policy influence inflation? Does open market operations have an impact? Explain. 2. How can adjusting interest rates make an impact on economy in the short term and long term? What sectors of the macroeconomy are especially sensitive to interest rate move (there are several)? Explain why? 3. Discuss the effect of interest rates on employment in the short run and in the long run. 4. Describe the mechanism how changes in monetary policy affect output and prices in the economy. 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 or in everyday life