๐Ÿฆ
Unit 4 ยท Lesson 5 ยท Economics

THE FED

Federal Reserve ยท Monetary Policy ยท Interest Rates ยท Money Supply

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Streak ๐Ÿ”ฅ
๐ŸŽš๏ธ Rate Lever Sort
Drag each Fed action into the correct monetary-policy direction.
Key idea: lower rates stimulate; higher rates cool inflation.
๐ŸŸข Expansionary Monetary Policy
Fed lowers rates / increases money supply to restart growth.
๐Ÿ”ด Contractionary Monetary Policy
Fed raises rates / reduces money supply to cool inflation.
๐Ÿ”— One Number Moves Everything
Build the chain that explains how the federal funds rate moves through banks, loans, consumers, businesses, and the whole economy.
๐ŸŽฏ Inflation Target Simulator
Move inflation above or below the Fed's 2% target. Then choose the likely Fed response.
Inflation Gauge

The Fed does not want zero inflation. Its target is about 2% per year.

Inflation2.0%
Target2.0%
Fed Decision

Inflation is near target. The Fed may hold steady.

๐Ÿ Results Checkpoint
Complete the three Fed activities, then unlock flashcards and the quiz.
Fed Review Complete

You practiced monetary-policy direction, the rate-transmission chain, and the 2% inflation target.

Activity 1

Expansionary vs. contractionary monetary policy

Activity 2

How one rate moves borrowing costs

Activity 3

Inflation target and Fed response

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โšก Key Terms
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๐ŸŽฏ Quick Quiz
Five randomized questions. Answer choices shuffle too.
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