Unit 2: The Stock Market Lesson 8: The Federal Reserve.

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Presentation transcript:

Unit 2: The Stock Market Lesson 8: The Federal Reserve

Lesson Objective  SWBAT describe how the dual mandates of Federal Reserve ensures economic stability.

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?

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

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?

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

Summary Discussion  How does the Fed’s manipulation of interest rates effect the economy?