A Harvard professor has developed a book designed to make economics easier to understand. Have them work in groups to research the Federal Reserve, its power, and its role in establishing monetary policy, and share their findings. Direct your students, working in groups, to conduct research to learn how Federal Reserve action impacts consumers. Have each group use its information to create a diagram or flow chart that illustrates the relationship between Federal Reserve monetary policy and consumer action, specifically in the area of interest rates. State your rationale.
Consumer spending drives the economy.
Scared consumers may choose not to spend. Generate a class discussion about the meaning of this quote. Have each group present its findings. While most students are too young to personally experience layoffs, their lives could be impacted if a parent or guardian is downsized. First, invite a human resources professional to talk to students about the financial and psychological effects of downsizing.