ECO 306 Final Project I

ECO 306 Final Project I Guidelines and Rubric

Overview

The first final project for this course is the creation of an informative presentation. The presentation will analyze U.S. interest rate behavior over a 10- to 15-year period during the last 50 years. Through your research, you will examine economic trends and risks, and the impact of monetary policy on interest rates.

This presentation will provide an opportunity for you to develop an understanding of interest rate behavior. By analyzing a sufficient period of time, you will identify trends and changes in interest rates and witness the impact that key economic events have on interest rate determination. In doing this, you will develop an appreciation of the relationship between policy targets and market factors, which impact economic activity. The final product will be submitted in

Module Three.

In this assignment, you will demonstrate your mastery of the following course outcomes:

· Explain the determinants and behavior of interest rates as they relate to markets

· Analyze the relationship between monetary policy and the economy for informing responsible business decision making

Prompt

For this final project, create a PowerPoint presentation of 8–10 slides analyzing U.S. interest rate behavior over a 10- to 15-year period during the last 50 years. You will access information in the Federal Reserve Economic Database (FRED) and create a presentation that includes speaker notes and visual representations of your findings.

Specifically, the following critical elements must be addressed:

I. Overview:Define the specific interest rates and time period that you are analyzing, and explain why you chose them.

II. Interest Rates

A. Explain interest rate trends over the time period and whether they have been high or low by historical standards.

B. Using FRED tools, visually illustrate changes in interest rates during the time period.

C. Describe economic risk factors that have impacted interest rates in the time period and what kind of impact they had. Consider bankruptcies, financial crises, geopolitical factors, and so on.

D. Describe underlying economic conditions that impacted the activity of these interest rates during the time period.

III. Monetary Policy

A. Discuss the impact of interest rate changes on general business decision-making. Consider expanding or contracting operations, deciding to undertake or postpone additions of capital (i.e., increasing productive capabilities), or increasing or decreasing inventories.

B. Explain the causal relationship between the federal funds rate and market rates of interest.

C. Using your analysis of interest rates during the time period as a guide, explain the internal and external impacts on the economy.

Deliverable

Final Submission: Presentation

Submit your presentation in Module Three. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of knowledge and feedback gained up to this point in the course. This submission will be graded with the Final Project I Rubric.