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Questions and Answers > Opportunities For Learning-santa Clarita - MATH 10/ Unit Activity_ Government 2: Analyzing Interest Rates

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Task 2 Analyzing Interest Rates The Federal Reserve has control over the nation’s monetary policy. Through adjusting the required reserve ratio, buying and selling government bonds on the open... market, or adjusting the discount rate, the Fed can influence interest rates and the money supply in the country. When we talk about interest rates, it’s important to distinguish between long-term and Short-term interest rates. Short-term interest rates are directly affected when the Fed changes its federal funds and discount rates and are for loans made for short periods. long-term interest rates are set by market forces. Lower long-term interest rates encourage investment by businesses and consumers because the cost of paying back the money over a long period is low. Keep this distinction in mind while you complete the following activity. Part A Considering the current state of the economy and what you know about monetary policy, do you think the Federal Reserve should increase interest rates, decrease interest rates, or keep interest rates constant? Why? Characters used: 0 / 15000 Part B Using an Internet search engine, find a website or an article that contains an editorial or opinion piece that shares your opinion and copy the URL in the space below. Keep in mind that it might take you some time to find a good article, so don’t automatically take the first one you find. Characters used: 0 / 15000 Part C List three main points from the source you found that explain the author’s reasoning. Characters used: 0 / 15000 Part D Based on what you have read, what bias might the author bring to his or her opinion? Characters used: 0 / 15000 Part E Using an Internet search engine, find a website or an article that expresses the opposite to your opinion and copy the URL in the space below. Keep in mind that it might take you some time to find a good article, so don’t automatically take the first one you find. Characters used: 0 / 15000 Part F List three main points from the source you found that explain the author’s reasoning. Characters used: 0 / 15000 Part G Based on what you have read, what bias might the author bring to his or her opinion? Characters used: 0 / 15000 [Show Less] [Show More]

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