Why the Fed will likely raise interest rates this week despite controversy in Washington
Answer the following questions in a Word document, then upload your project to the Final Projects Dropbox.
1.Who is Janet Yellen?
2.List and explain the two important jobs of the Federal Reserve as presented in the video.
3.List the three tools the Federal Reserve uses to control the money supply.
4.Define “expansionary” and “restrictive” monetary policy. Explain the difference.
5.The Federal Reserve has risen interest rates several times in the past year. What “interest rate” does the Federal Reserve manipulate or control? How can the control
of a particular interest rate control the supply of reserves?
6.Over the next several months, the Federal Reserve has suggested that interest rates may rise several more times. Identify which monetary policy is being used. In
several paragraphs, explain why interest rates might be rising when the economy seems to be so strong.