How does the Federal Open Market Committee work to formulate the nation's monetary policy in the United States? As the second segment of a lesson on the role of the Fed in setting monetary policy, class members will learn about open market operations and stagflation and work in groups to evaluate several different monetary policy scenarios.

Concepts

discounts

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Additional Tags

open market operations, tight monetary policy, reserve requirements, discount rate, reserve bank, social studies

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Classroom Considerations

• You may wish to review to ensure that class members have the background knowledge necessary to complete the group activity

Pros

• Includes all student handouts and answer keys necessary for the activity

Cons

• None

Common Core

RH.11-12.2 RH.11-12.3