Week 8 How the Federal Reserve Impacts Your Life

Week 8: How the Federal Reserve Impacts Your Life
You have now been introduced to the monetary system and the FED’s policy tools in this chapter. Consider the impact of the FED’s policy tools in this discussion activity.
In this discussion, you will reflect on the Federal Reserve and how actions taken by the Federal Reserve impact your life.
What is the Federal Reserve and what does it do?
Briefly explain two monetary policy tools that the Federal Reserve still uses to stimulate the economy after the Great Recession (Housing crises of 2008-2009).
How do the decisions taken by the Federal Reserve affect businesses? Detail one example.
Reflect on how the decisions taken by the Federal Reserve affect your life. Detail one example.
Responses
Respond to two peers that have selected a different business and real-life example than yours and address the following:
Did your peer correctly identify the impact of the Fed’s decision on the business? Explain why or why not?
Did your peer correctly identify the impact of the Fed’s decision on his/her life? Explain why or why not?

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