Web Activity 1

By how much have the following interest rates changed in the last 12 months: (a) federal funds; (b) 10-year Treasury bond; (c) 30-year mortgage rate? Log on to www.economagic.com to find rates. Why don't they all change by the same amount?

Web Activity 2

Read the Fed's Beige Book summary of current economic conditions. This can be found at www.federalreserve.gov by searching for "Beige Book." Which changes in monetary policy might the Fed use to improve economic conditions?

Web Activity 3

Log on to www.bls.gov and look for the "Latest Numbers" to find the current unemployment rate. Assume the natural rate of unemployment is 4.5%. Is the economy currently at full-employment? If not, what open market operations should the Fed initiate to help the economy reach its full-employment level of output?