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Download The Federal Reserve to the Rescue!
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The Federal Reserve to the Rescue! Directions: Identify the situation as inflation or recession and explain why. Then draw or write how the Federal Reserve would handle each situation and how that would affect the economy! Situation What would the Fast Forward One Month… “The government printed way Federal Reserve do? What do the headlines say? too much money!!!” Will this cause inflation or a recession? ____________________ Why? _____________________ _____________________ Situation “Unemployment is high and businesses are losing lots of money!!!” What would the Federal Reserve do? Fast Forward One Month… What do the headlines say? Will this cause inflation or a recession? ____________________ Why? _____________________ _____________________ Note: In the below scenario you are given the Federal Reserve’s response. You need to identify the situation and responses effect on individuals and businesses. Situation What is the Federal What could the situation be? Reserve’s response to the _____________________ situation? _____________________ Will this cause inflation or a recession? __________ Fast Forward One Month… What do the headlines say? The Federal Reserve increased the supply of money! Why? ________________ _____________________ Making Connections: How does the Fed’s ability to affect the money supply relate to its role as the bank’s bank and the Central Bank of the US? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________
