Government Policy: Fiscal and Monetary · Macroeconomics

The Federal Reserve and Monetary Policy

Analyzing how the central bank uses interest rates and the money supply to control inflation.

Key Questions

  1. 1How do interest rate changes ripple through the housing market?
  2. 2What incentives drive the Fed to maintain its independence from Congress?
  3. 3What are the risks of keeping interest rates too low for too long?

Common Core State Standards

C3: D2.Eco.11.9-12C3: D2.Eco.12.9-12
Grade: 12th Grade
Subject: Economics
Unit: Government Policy: Fiscal and Monetary
Period: Macroeconomics

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