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Unit 2: The Stock Market
Lesson 8: The Federal Reserve
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Lesson Objective
SWBAT describe how the dual mandates of Federal Reserve ensures economic stability.
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WOTD/Initial Activity
Inflation
A decrease in the value of a dollar
Deflation
An increase in the value of a dollar
Initial Activity
Why does a movie ticket today cost $12 when in 1965 it would cost 25 cents?
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Activity 1: Defining the Role of the Federal Reserve
Focus Question: How did the Federal Reserve develop as a support for economic stability?
Read Defining the Role of the Federal Reserve
Analyze the dual mandates of the Federal Reserve
Answer the two close reading questions at the end of the reading
Share Out & Chart Definitions on Board
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The Fed
Quickwrite
“By raising and lowering interest rates, creating money and using a few other tricks, the Fed can either stimulate or slow down the economy”
Why would the Fed want to slow down the economy?
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Activity 2: Federal Reserve Economic Indicators Jigsaw
Focus Question: How do investors use the economic indicators published by the Federal Reserve to choose which stocks to invest in?
Read CPI Indicator
Read Money Supply Indicator
Read Federal Open Market Committee & the Discount Rate
Summarize your article
Describe how you could utilize this information in your investment strategy.
Share Out & Chart Definitions on Board
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Summary
Discussion
How does the Fed’s manipulation of interest rates effect the economy?