Teach Steps 1–20, including the Chain of Events activity. Emphasize how changes in the federal funds target range affect other interest rates, borrowing, spending, and investment. After the lesson, show the Understanding Bonds video segment [4:16–5:04] to connect changing market interest rates to bond prices
How Federal Reserve Interest Rate Changes Affect the Economy
Essential Lesson 5
60 MIN(S)
Resources
What Happens When the Federal Reserve Raises Interest Rates?
No-Frills Money Skills: Understanding Bonds