3.04 honors

3.
04 Honors Template
Student Name: Julia Joseph
Step One: Compose a few research questions using these two statements as prompts
A. The Federal Reserve serves a positive role in the U.S. economy.
1. How can the Federal Reserve's interest rate policy help to promote
employment growth and keep inflation under control?
2. How effective is the Federal Reserve in dealing with financial crises and
protecting the banking system?
3. How does the Federal Reserve promote global economic stability through its
impact on international markets and monetary policy?
B. The Federal Reserve serves a negative role in the U.S. economy.
1. In what ways do the Federal Reserve interest rate choices limit small-business
expansion and consumer spending?
2. How might the Federal Reserve's control over the money supply harm the
economy?
3. How well does the Fed control inflation without unintentionally triggering
economic recessions or slowdowns?
Step Two: Write a paragraph in response for each of the following questions
Paragraph 1 – Make a claim about the positive role the Federal Reserve serves in the U.S.
economy. Use evidence from your research to support your claim.
By preserving price stability and encouraging steady economic growth, the Federal Reserve
plays a positive role in the economy of the United States. Controlling monetary policy, which
affects interest rates and the money supply, is one of its main responsibilities. The Fed
assists to control inflation, reduce unemployment, and maintain a healthy financial system by
modifying the federal funds rate. For example, the Federal Reserve reduced interest rates to
promote borrowing and spending during economic downturns like the COVID-19 epidemic
and the 2008 financial crisis, which aided in promoting economic recovery. Furthermore, by
overseeing banks and offering emergency funding, the Fed maintains the banking system's
stability, protecting consumers and creating confidence within the economy.
Paragraph 2 – Make a claim about the negative role the Federal Reserve serves in the U.S.
economy. Use evidence from your research to support your claim.
Through its manipulation of monetary policy, the Federal Reserve may have a negative role
on the American economy by creating economic instability. The Fed may promote risky
financial activity and generate booms in assets by keeping interest rates too low for an
extended period of time, according to critics. These actions can result in significant financial
crises, such as the one that occurred in 2008. Furthermore, quantitative easing, the Fed's
policy of creating more money, can cause inflation and depreciate the US currency. This can
lead to long-term economic issues and lower consumer purchasing power. Therefore, rather
than making the economy more stable, the Fed's policies might make it more unstable.
Paragraph 3 – Choose a side. Based on the evidence, which perspective do you agree with
more? Write a paragraph to identify your position. Use evidence to explain your choice.
Based on the information presented by the sources, I agree with the side that the Federal
Reserve has a positive influence on the US economy. The Federal Reserve's power to alter
interest rates and control the money supply is critical to maintaining economic stability.
When the economy experiences a downturn, such as during the 2008 financial crisis or the
COVID-19 epidemic, the Fed's policies, such as interest rate cuts, help to reach economic
recovery by promoting more borrowing and spending. While opponents claim that the Fed's
actions, such as quantitative easing, might cause inflation or financial instability, the
long-term advantages of economic development and stability outweigh the included risks.
MLA CItations:
Meltzer, Allan. “What’s Wrong with the Federal Reserve?” Hoover Institution,
www.hoover.org/research/whats-wrong-federal-reserve. Accessed 9 Nov. 2024.
Foster, Sarah. “6 Ways the Fed’s Interest Rate Decisions Impact Your Money.” Bankrate, 4
Nov.2024,
www.bankrate.com/banking/federal-reserve/how-federal-reserve-impacts-your-money/.

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3.

Student Name: Julia Joseph

A. The Federal Reserve serves a positive role in the U.S. economy.

B. The Federal Reserve serves a negative role in the U.S. economy.

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