Answer both of the following questions:

1. Look up the exchange rate of the U.S. dollar for another currency in a country you may wish to visit in the future - whether to go on vacation, visit family, or travel for business.  Do some online research - what was the exchange rate last year?  How about three years ago?  What do you think resulted in these changes?

2. Do you think the government and Federal Reserve should, indeed, make monetary and fiscal adjustments every so often when there is a lot of inflation, or do you think they should adopt a hands off approach to let the economy play out as it wants so that it can correct itself without the same threat of destroying certain sectors of the economy?