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Following recent Federal Open Market Committee announcements, newspapers across the country have had front-page stories about the most recent Federal Reserve actions to lower interest rates and boost spending and employment in the U.S. economy. The announcements reflect serious concerns with the state and direction of the economy. This lesson is intended to guide students and teachers through an analysis of the actions the Federal Reserve began to take earlier this year in an effort to strengthen the economy. An understanding of monetary policy in action is fundamental to developing a thorough understanding of macroeconomics and the U.S. economy.
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