Question 1. What major economic indicators would you examine if you were planning to make a large purchase and needed a loan? For example, think about buying a new car, some business equipment, or a house?
Question 2. Describe how the Federal Reserve's policy-makers influence interest rates. Explain the difference between expansionary and contractionary policies.
Question 3. Do you think prospects for changes in Federal Reserve policy would affect your decision to make a purchase that requires financing? Explain.