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Following a jigsaw format, Class is divided into 3 teams; team 1 represents the Fed; team 2 represents financial institutions; team 3 represents the borrowers (spending and investing). Teams are provided with state of the economy (real or hypothetical). Team 1 conducts research then designs and implements appropriate monetary policy; The other two teams research and project their reactions to team 1(Fed policy). All three teams are researching and gathering information on policies, expectations, and reactions of the other teams. Not only team members interact, but also teams are divided into groups to interact and assess their activities, findings, and learning. Written reports can be provided by each team, by each group; or perhaps a written report can be done by each student. The jigsaw cooperative and interactive format provides students the opportunity to interact within teams and groups which will help students understand monetary policy through the actions and reactions of the Fed, Financial institutions, and the public.At the completion of this activity, students should be able to understand how monetary policy works and the potential impact of monetary policy on the economy.

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