Do you agree or disagree with the following two? Explain why?

1. Should banks have to hold 100% of their deposits? Why or why not?

Participants may explore the role of fractional reserve banking in the economy and discuss potential alternatives or modifications to the current system. Considerations about the balance between safeguarding depositors' funds and facilitating economic growth may arise, as well as the potential consequences of imposing such a strict reserve requirement on banks. Overall, it likely encompasses a nuanced analysis of the implications, risks, and benefits associated with the proposed 100% deposit reserve requirement for banks. A delicate balance between ensuring the safety of deposits and allowing banks to fulfill their role in facilitating economic activity. Striking the right balance involves considering potential risks, economic consequences, and the historical context of banking practices.

2. Hydraulic fracturing (fracking) has the potential to significantly increase the amount of natural gas produced in the United States. If a large percentage of factories and utility companies use natural gas, what will happen to output, the price level, and employment as fracking becomes more widely used?

The widespread adoption of hydraulic fracturing (fracking) for natural gas extraction in the United States has the potential to significantly increase production, impacting output, the price level, and employment. The increased availability of natural gas can contribute to expanded industrial capacity and potentially lower energy costs. This may lead to job creation in the energy sector and positively affect industries using natural gas as a primary input. However, the economic impact is subject to environmental and social considerations, and the overall outcome depends on factors such as government policies, technological advancements, and public attitudes toward the trade-offs between economic benefits and potential risks associated with fracking.