Economics – 4/25/17

I.  Bellwork Q&A

1. Why would the Federal Reserve need to use an contractionary monetary policy?
2. Explain a tight money policies impact on exports.
3. Explain why changes in the discount rate affect the prime rate and most other interest rates?

II.  Objectives:

• Explain how the Federal Reserve uses monetary policy as a means to achieve macroeconomic goals
• Analyze the impact of monetary policy from 1990 – 2000 by viewing historical events which  caused challenges to the economy.

III.  Classwork

A.  Quick Monetary Policy Review Video

B.   ECONOMIC USA MONETARY POLICY

https://www.learner.org/vod/vod_window.html?pid=2477

Start @ 12m

1. What policy did Alan Greenspan reaffirm when he came to office?
2. What scenario was the Fed most concerned about related to the stock market crash in 1987?
3. How did the Fed supply liquidity?
4. What eventually happened to the stock market?
5. What was the trend with interest rates by the Fed in 1999?
6. What was happening to the housing market in 2006?
7. What was the Fed attempting to do as a result of the housing market bubble?
8. What did the Fed do to deal with the with the economic collapse resulting from the housing crisis of 2008-2009?
9. What are the 3 problem the Fed has when dealing with economic bubbles?

 

IV.  Chapter 14.3 Quiz

Economics W2017