(Mberiah Only ECO202) MONETARY POLICY: MONEY, CREDIT, THE FEDERAL RESERVE, AND INTEREST RATE

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MONETARY POLICY: MONEY, CREDIT, THE FEDERAL RESERVE, AND INTEREST RATES

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

· Case

· Explain the tools the Federal Reserve uses to conduct monetary policy. Apply what you have learned about fiscal and monetary policy to identify a variety of past and present government actions.

· SLP

· Analyze the effect of Federal Reserve policy on the financial health of organizations. Explain differences in yields on debt instruments using the yield curve.

· Discussion

· Discuss the effectiveness of the Chairman of the Federal Reserve.

Module Overview

Money, which represents the prose of life, and which is hardly spoken of in parlors without an apology, is, in its effects and laws, as beautiful as roses. –Ralph Waldo Emerson, 1844.

We'll examine money—what it is, how it evolved, how it functions, how it can be manipulated, and how it relates to the rest of the economy.