Governments closely monitor the growth and contraction of their economies in order to manage the well-being of their citizens. When economies grow, well-being generally increases. When economies contract, the resulting reduced consumption usually causes hardship. To avoid contraction (also called recession), governments use fiscal and monetary policies to stimulate the economy. Fiscal policy operates based on government budgets, spending, and tax rates. Monetary policy is a tool of central banks and consists of changes to monetary supply and interbank lending rates. For this activity, What is today’s U.S. Federal Reserve Bank’s discount rate? When did the discount rate last change and why? Look for trends and predictions. What is the consensus? What about this consensus should make people feel secure or anxious?
Governments closely monitor the growth and contraction of their economies in order to manage the well-being of their citizens. When economies grow, well-being generally increases. When economies contract, the resulting reduced consumption usually causes hardship. To avoid contraction (also called recession), governments use fiscal and
For this activity,
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What is today’s U.S. Federal Reserve Bank’s discount rate?
-
When did the discount rate last change and why?
-
Look for trends and predictions. What is the consensus?
- What about this consensus should make people feel secure or anxious?
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