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Story:
U.S. Central Bank Lowers Key Interest Rates to Boost Economy, 09/19/07
1. What is the Federal Reserve and what did it do this week? Why?
2. When did this last happen? What is the hoped for outcome?
3. Describe some of the problems in the housing market that are adversely impacting the U.S. economy.
4. According to economists, why did the federal government do this?
5. Why do some economists think this was a mistake?
Discussion Activity (more research might be needed): 1. How do the problems in these credit and housing markets impact the rest of the economy? Make a chain chart showing what might happen if average Americans have trouble borrowing money or can't pay their mortgage and lose their house. 2. What is happening in your neighborhood in terms of the housing market? Are more houses for sale now than a year ago? Are homes selling for more or less? How long are houses staying for sale before they are purchased as compared to last year and the last five years? Where would you go to find this information? How does your neighborhood compare to the rest of the country? 3. Read, listen to
or watch this interview with the former head of the Federal Reserve, Alan
Greenspan. Write a 300-500 word essay on either of these topics providing clear examples. Send your completed editorial to NewsHour Extra (extra@newshour.org). Exceptional essays might be published on our Web site. |