Discussion 1&2 - Monetary Policy, Enron, and Business Ethics

Monetary Policy, Enron, and Business Ethics

Discussion 1
-What is monetary policy? How does the Fed increase money supply?
-What is the effect of an increase in money supply?
-Explain how government deficits lead to increases in the money supply.
-How does monetary policy affect a company's financial status? Answer this question from both a profitability and balance sheet perspective.

Discussion 2
- What took place in the Enron Scandal, and why!
- In what way was ethics a major factor in the overall scandal itself? Was there any ethical behavior what so ever, and if so was it a deciding factor on whether or not the scandal took place?
- What is the Sabanes Oxley Act and how did the Sabanes Oxley Act come about in terms of the Enron scandal.
- What economic issues for example market failure, strategic management, knowledge economics, and organizational structure. Do you think apply to the Enron Scandal.