Subject:
Economics
Material Type:
Module
Level:
Community College / Lower Division, College / Upper Division
Provider:
Ohio Open Ed Collaborative
Tags:
Fiscal Policy, Macroeconomics
License:
Creative Commons Attribution Non-Commercial
Language:
English
Media Formats:
eBook, Text/HTML

Fiscal Policy: Course Map & Recommended Resources

Overview

Looks at fiscal policy as a means to address problems in the macroeconomy. Focuses on government spending as well as taxes and transfers in the Keynesian model, as well as determinants of the level of Aggregate Demand.

Learning Objectives

  1. Comprehend the development of, and be able to apply aggregate demand and aggregate supply (8)
  2. Comprehend the effects of fiscal and monetary policies (9)
  3. Comprehend the effects of the federal government’s budget deficit (12)

Learning Topics:

  1. Shortcomings and tradoffs of fiscal policy 

  2. Analysis of the use of fiscal policy using AD/As model, use of spending and tax multipliers

  3. Automatic stabilizers and their impact 

NOTE: This Module meets Ohio TAGs 8, 9, 12 for an Intro to Macroeconomics Course

Supplemental Content/Alternative Resources

Alternative Economics Sources

Principles of Macroeconomics: Chapter 12

  • Note: alternative open access text.

  • Authored by: Rittenberg & Tregarthen (2016). Retrieved on: October 26, 2018.

 

Non-open access texts:

Principles of Economics, Twelfth Edition

  • Authored by: Karl E. Case, Ray C. Fair, and Sharon M. Oster (2017). Pearson Publishing. 

Macroeconomics, Twelfth Edition

  • Authored by: Robert J. Gordon (2012). Pearson Publishing.

Economics, Fourth Edition.

  • Authored by: Joseph E. Stiglitz (2007).

 

Other Sources, grouped by Learning Topics

Shortcomings and tradeoffs of fiscal policy

Analysis of the use of fiscal policy using the AD/AS model, use of spending and tax multipliers

  • Economic Effects of Fiscal Policy

    • Collection of reports, including some graphs, from Congressional Budget Office about effects of fiscal policy. 
    • Authored by: Congressional Budget Office. Retrieved on: November 10, 2018.
  • Introduction to Fiscal Policy
    • Overview of fiscal policy, including historical context and some photographs.
    • Boundless Economics. Provided by: Lumen. Retrieved on: November 10, 2018. 

Automatic stabilizers and their impact

  • Automatic Stabilizers: There When Congress Isn't

    • This is from a partisan publication, but gives definition and examples of automatic stabilizers, and why they may be useful in the most divisive political climate.
    • Authored by: Mike KonczalRetrieved on: November 10, 2018. 
  • Automatic Stabilizers
    • Explains the effect of taxes and transfers on the GDP.

    • Explanation of automatic stabilizers from the Tax Policy Center, run by two well regarded Washington organizations.

    • Authored by: Xplaind. Retrieved on: November 10, 2018

What is fiscal policy; key components of fiscal policy; budget surplus, budget deficit, balanced budget and national debt; the role of Congress and the President

  • What Singapore And Germany Can Teach The U.S. About Fiscal Policy

    • Blog entry about fiscal policy in other countries as it relates to the U.S., written by a fellow at the Urban Institute. Named “Editor’s Pick” by Forbes magazine.
    • Authored by: Howard Beckman (Business in the Beltway). Retrieved on: November 10, 2018.
  • The Policy Making Process – Cliff Notes
    • Cliff notes summary of the process by which fiscal policy is made.
    • Authored by: Cliff Notes. Retrieved on: November 10, 2018.
  • Record Budget Surplus in April
    • Discusses a surprising budget surplus in one month in the midst of a trend of budget deficits.
    • Authored by: Michael Rainey (The Fiscal Times). Retrieved on: November 10, 2018.
  • How to Balance the Budget
    • A detailed outline of ways to balance the budget from the Brookings Institute, a well respected Washington source.
    • Authored by: Alice M. Rivlin and Isabel V. Sawhill (Brookings Institute) (March 1, 2004). Retrieved on: November 10, 2018.
  • How Much Impact can a President have on the Economy?
    • How politics can influence government economic policy, and how economic conditions can influence politics.
    • Authored by: Mark Thoma (CBS Money Watch) (August 10, 2016). Retrieved on: November 10, 2018. 
  • U.S  National Debt Clock
    • Gives a strikingly disturbing way to see how quickly different types of debt, including the U.S. national debt, are increasing. Looks at the U.S., and would probably benefit from discussion of similar phenomena in other countries.
    • Provided by: U.S. Debt Clock .org. Retrieved on: November 10, 2018.

Topic Active Learning Exercise

Saving the Economy

To the student: You and your colleagues have been hired by the Congressional Budget Office to propose fiscal policy for the United States. You are encouraged to work together to decide what the best approach is that will help save the economy. Your task is to address two situations in the economy, and decide what to do.

In each case, you are to use the given a model of the economy to make your decision. In each case, you want to reach the desired level of equilibrium income through fiscal policy. In addition, in each case, a particular tool of fiscal policy is given to you. Your task is to find the appropriate change to that tool that will get the economy to the desired level. You are given some parameters for your important work.

In each case, you may only use the fiscal policy tool suggested. Once you have decided on an appropriate response to the current situation, explain why you have chosen that level by answering the following questions:

  1. What is the current equilibrium level of income?

  2. By how much must income change to get to the desired level of income?

  3. By how much should the indicated tool change to reach the desired level?

  4. Given the relevant multiplier, does your answer make sense? Why?

  5. What is the new equilibrium level of income

  6. If you had other tools available to you, what other approaches might give  you the same results?

 

Case A

C = 50 + 0.9(Y-T)

I = 40

G = 10

T = 10

  1. You want to reach an equilibrium level of income equal to 1000. You may use government spending to do this
  2. You want to reach an equilibrium level of income equal to 1000. You may use a change in taxes to do this.

Case B

C = 10 + 0.8(Y-T)

I = 30

G = 40

T = 40

  1. You want to reach an equilibrium level of income equal to 480. You may use government spending to do this.

  2. You want to reach an equilibrium level of income equal to 480. You may use a change in government subsidies to do this.

Case C

C = 10 + 0.75(Y-T)

I = 50

G = 40

T = 40

  1. You want to reach an equilibrium level of income equal to 190. You may use changes in government spending to do this.

  2. You want to reach an equilibrium level of income equal to 190. You may use a change in taxes to do this.

Case D

C = 40 + 0.5(Y-T)

I = 40

G = 30

T = 20

  1. You want to reach an equilibrium level of income equal to 250. You may use changes in government spending to do this.

  2. You want to reach an equilibrium level of income equal to 250. You may use changes in subsidies to do this.

 

Answers to “Saving The Economy"

Case A

Question 1:

  1. Ye = 910
  2. Need an increase of Y = 90
  3. Change in G to do this = 9
  4. Multiplier on G is equal to 10, gives increase in Y of 90
  5. New equilibrium = 1000

Other possible tools: increase in Subsidies or cut in Taxes.

Question 2: 

  1. Ye = 910
  2. Need an increase of Y = 90
  3. Change in T to do this = -10
  4. Multiplier on T is equal to -9, gives increase in Y of 90
  5. New equilibrium = 1000

Other possible tools: increase in Subsidies or increase in Government spending

Case B

Question 1: 

  1. Ye = 240
  2. Need an increase of Y = 240

  3. Change in G to do this = 48

  4. Multiplier on G is equal to 4, gives increase in Y of 240

  5. New equilibrium = 480

Other possible tool: increase in Subsidies or cut in Taxes

Question 2: 

  1. Ye = 240

  2. Need an increase of Y = 240

  3. Change in T to do this = 80

  4. Multiplier on S is equal to 3, gives increase in Y of 240

  5. New equilibrium = 480

Other possible tools: increase in Government spending or Subsidies

Case C

Question 1: 

  1. Ye = 280

  2. decrease of Y = 90

  3. Change in G to do this = -22.5

  4. Multiplier on G is equal to 4, gives decrease in Y of 90

  5. New equilibrium = 190

Other possible tools: decrease in Subsidies or increase in Taxes

Question 2: 

  1. Ye = 280

  2. Need a decrease of Y = 120

  3. Change in T to do this = 30

  4. Multiplier on T is equal to -3, gives decrease in Y of 90

  5. New equilibrium = 190

Other possible tools: cut in Government spending or decrease in Subsidies

Case D

Question 1:

  1. Ye = 200
  2. increase of Y = 50

  3. Change in G to do this = 25

  4. Multiplier on G is equal to 2, gives increase in Y of 50

  5. New equilibrium = 250

Other possible tools: increase in Subsidies or cut in Taxes

Question 2: 

  1. Ye = 200

  2. Need an increase of Y = 50

  3. Change in S to do this = 50

  4. Multiplier on S is equal to 1, gives increase in Y of 50

  5. New equilibrium = 250

Other possible tools: increase in Government spending or cut in Taxes

 

Possible Grading Rubric:

For each section, each sub-question is worth 2.5 points, giving a possibility of a total of 100 points.

Data Exercise using FRED

Data Questions with Suggested Answers

To the student: You have been asked to decide if changing a government subsidy will have any effect on output in an economy, and, if so, the direction of that effect. You suspect that it will have a similar effect, but in an opposite direction, as if found with a tax cut. You hope to use data to illustrate that a subsidy is, in many ways, a negative tax.

FRED – Government Subsidies 

  1. Use the FRED data sets to calculate the correlation coefficient between the variables  Federal government current expenditures: Subsidies, Billions of Dollars, Not Seasonally Adjusted (B096RC1A027NBEA) and Real Gross Domestic Product, Billions of Chained 2012 Dollars, Seasonally Adjusted Annual Rate (GDPC1) .

  2. Graph these two variables on the same graph, and observe the direction of the relationship between the them; what does it imply about this relationship?

  3. Calculate the correlation coefficient between these two variables. Does it agree with what you concluded from your graph?

FRED – Tax Changes

  1. Use the FRED data sets to calculate the correlation coefficient between the highest tax rate,  U.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket, Percent, Not Seasonally Adjusted (IITTRHB)  and GDP, Real Gross Domestic Product, Billions of Chained 2012 Dollars, Seasonally Adjusted Annual Rate (GDPC1).

  2. Graph these two variables on the same graph, and observe the direction of the relationship between the them; what does it imply about this relationship?

  3. Calculate the correlation coefficient between these two variables. Does it agree with what you concluded from your graph?

 

Answers

FRED – Government Subsidies 

  • Graph
  • Correlation coefficient: 0.0992211

FRED – Tax Changes

  • Graph
  • Correlation coefficient: -0.88233

(Note that subsidies act in the opposite direction as taxes.)

 

Possible Grading Rubric:

100  points, 20 points each for:

  • Correct variable 1 is used
  • Correct variable 2 is used
  • The data are presented as a scatterplot
  • The correlation coefficient is correctly calculated
  • The correct interpretation of the correlation is given

Fiscal Policy and the Aggregate Demand Curve

Deriving the Aggregate Demand Curve

The Keynesian model

The Keynesian model of the economy is based on the ideas of John Maynard Keynes, who realized that the economy was not naturally returning to a full employment level in the wake of the stock market crash that set off the Great Depression. Rather than wait for the economy to return to an appropriate level “in the long run,” he proposed that there was a role to be played by government policy. This idea led to the employment of many people through the creation of publics works projects as part of an approach to expansionary fiscal policy that was named “The New Deal.”

The Keynesian model of the economy proposes that aggregate expenditures are composed of Consumption, planned Investment, and Government spending, often abbreviated as “C+I+G”, as well as exports (X) minus imports (M), giving C + I + G+ (X - M) once the international sector is included. For now, we will focus on the domestic sector, leaving the international sector for additional chapters. As an equilibrium for an economy is found where income is equal to planned expenditures, this idea can be represented by a graph with planned aggregate expenditures on the vertical axis and income on the horizontal axis. The level of income where planned aggregate expenditures are equal to income is found where the aggregate expenditure line crosses the forty-five-degree line of the graph, indicating that what is on the vertical axis is equal to what is on the horizontal axis. Any point other than this point will lead to unplanned inventory depletion (if income is greater than planned expenditure) or accumulation (if income is less than planned expenditure). Thus, only at the indicated income level will the economy tend to stay at the current level of income, an income level that is an equilibrium, denoted Ye.

Note that should aggregate expenditures increase, the entire AE line will shifts up, bringing the economy to a higher equilibrium level of income. An illustration of the Keynesian diagram is given below.

           

               

                                        

The Goods Market (assuming a given interest rate, r.)

An economy may be modeled using equations for the variables C, I and G. One possible general model of an economy is given by:

  • C = c + b(Y-T) = planned consumption at income level, Y and tax level, T
  • I = Io – 2r = planned investment at interest rate, r
  • G = government spending
  • T = taxes
  • Y = income (and Ye is the equilibrium income, where there are no forces for change.)

A specific example of such a model may be written:

  • C = 10 + 0.75(Y-T)
  • I = 30 – 2r
  • G = 40
  • T = 40
  • r = 5

Recall that an equilibrium is found where planned aggregate expenditures is equal to income in the economy. In this example Ye is found at Y = 160.

The Keynesian graph shown above illustrates the equilibrium level of output occurring where Aggregate Expenditures crosses the forty-five degree line (indicating that income is equal to expenditures) illustrates this calculation. A change in aggregate expenditures shifts the AE line and therefore changes the level of equilibrium income found in the economy.

 

The Money Market

In order to find the equilibrium level of output found above, it was necessary to know the level of planned investment. This, in turn, depends on the interest rate in this economy, a piece of information that arises from the money market.

The money market can be thought of as the intersection of supply and demand of money. As with any supply and demand, these two relationships interact based on some price, typically represented as “P.” However, in the money market, the price of money is not some “P”, as with pizza or cars, but the interest rate, which is the price that people pay to borrow money today rather than save for it for tomorrow.

The demand for money is a negatively sloping demand curve, as demand curves typically are. At higher interest rates, people want to borrow less money, but at lower interest rates, they want to borrow more money.

The supply curve for money, is, however, a vertically shaped supply curve. The amount of money in the economy is determined by the Federal Reserve System, and is not dependent on the interest rate. We generally refer to this amount of money as the “nominal money supply” as the Federal Reserve System determines this amount, through several tools it has available to set the money supply.  A graph of the supply and demand curves in the money market therefore show a downward sloping demand curve for money with a vertical supply curve of money. On the vertical axis is the price of money, the interest rate, while the horizontal axis shows the amount of money demanded or supplied.

The money market may be generally  modeled algebraically with the supply and demand equations:

  • MS = MSo, as determined by the Federal Reserve System
  • MD = MDo – ar, where r is the interest rate

For a specific example,

  • MS = 40, as determined by the Federal Reserve System
  • MD = 50 – 5r
  •      This tells us that at a MS = MD = 40, the interest rate is equal to 2

Additional resource: Aggregate Expenditures

 

Interaction of money and goods markets

Note what happens to the equilibrium interest rate if the money supply changes. If the money supply increases, this will cause the interest rate to fall. In the goods market, this will cause the amount of investment chosen by firms to increase, and therefore the entire level of Aggregate Expenditures will increase. On the graph, this will lead to a higher level of equilibrium income. Alternatively, if the money supply is decreases, this will lead to a higher interest rate and therefore a lower level of planned investment and lower Aggregate Expenditures at each level of income. This shifts the Aggregate Expenditure line down, leading to a lower level of equilibrium income.

                                   

                        Money supply and Money Demand

    

For a specific example using the money and goods markets presented above:

  • If the Money Supply is increased to
    • MS = 45, as determined by the Federal Reserve System
    • MD = 50 – 5r
  • The new equilibrium interest rate will now be r = 1, with a new level of planned investment of 28. This leads to a new equilibrium level of income equal to 192. Note that an increase in the money supply led to an increase in equilibrium income, as Aggregate Expenditures increased from AE to AE’.

Additional Resource: Monetary Policy

 

Introducing the Price Level

This amount of money supplied, as determined by the Federal Reserve System, is a nominal amount, and that amount determines the location of the vertical money supply curve on the graph of the money market.

However, the purchasing power of this amount of money is not constant over time. For the same amount of units of money supplied, we find that what that amount is worth in terms of purchasing power varies with the overall price level. If prices are high (perhaps due to inflation), the amount of goods the nominal amount of money in the economy will actually purchase will be lower than it would be if the price level were high. For example, the same $10,000 might have bought a new car in 1975 but today now buys only a used car. Thus, the same nominal amount of money is actually worth less than it was many years ago. Therefore, an increase in the price level has the same effect as a decrease in the money supply. This decline in real money supply leads to an increase in the interest rate and, through a corresponding decline in Aggregate Expenditures, a decline in the equilibrium level of income in the economy. To summarize, an increase in the price level leads, through the money market and the response of the goods market to an increase in the interest rate, leads to a decline in the equilibrium income level.

Alternatively, a decrease in the price level has the same effect as an increase in the money supply, again leading to a decrease in the interest rate and, through the reuslting increase in Aggregate Expenditures, an increase in the equilibrium level of income in the economy. To summarize, a decrease in the price level leads, through the money market and the response of the goods market to a decline in the interest rate, to an increase in the equilibrium income level.

Graphing this negative relationship between price level and equilibrium income gives a graph of what is called the “Aggregate Demand Curve.” Note that the value on the vertical axis is price level, and not the price of any particular good, while the value on the horizontal axis is the equilibrium level of income, and not the amount of any good or collection of goods.

                                              

 

 

Additional Resource: Monetary Policy 

 

Using Aggregate Demand to Study Fiscal Policy

The graph of the Aggregate Demand curve can change in response to changes in the economy. We will use such changes to study the effects of fiscal policy on the Aggregate Demand Curve (denoted as “AD”.).

The Aggregate Demand curve is derived from changes in the Keynesian cross diagram in response to changes in Aggregate Expenditures. The direction in which any change will shift the resulting Aggregate Demand curve is implied by the response of equilibrium income to a change in Aggregate Expenditures, especially when such a change results from fiscal policy.

As unemployment was high and spending was low during the Great Depression, there was little economic pressure to push prices up, meaning that prices were essentially constant during that time. Because of this, we will, for now, use the convention that the AD curve can shift without any change in the price level think of a change in equilibrium income  in response to a change in Aggregate Expenditures, we can imagine the Aggregate Demand curve shifting in the direction implied by such a change. If equilibrium income increases in response to some form of fiscal policy (such as an increase in government spending or a cut in taxes), the entire Aggregate Demand curve will shift to the right, to AD’, with an increased level of equilibrium income at each price level. Alternatively, if equilibrium income falls in response to some form of fiscal policy (such an a decline in government spending or an increase in taxes), then the Aggregate Demand curve shifts to the left, to AD’’, with a declining level of equilibrium income at each price level. Therefore, fiscal policy that is deemed “expansionary” (an increase in government spending or subsidies or a cut in taxes) shifts the Aggregate Demand curve to the right, while “contractionary” fiscal policy (a cut in government spending or subsidies or an increase in taxes) shifts the Aggregate Demand curve to the left.

                                      

As hinted at earlier, the final effect on the economy as a whole of a shift in the Aggregate Demand curve is determined by the portion of the Aggregate Supply curve that intersects the Aggregate Demand curve for that economy. A shift in Aggregate Demand on the Keynesian (flatter) portion of the Aggregate Supply curve will result in large changes in output with very small changes in price levels, while an equivalent change on the Classical (very steep) portion of the Aggregate Supply curve will lead to large changes in price level and small changes in output. Thus, while shifts in the AD curve tgive some idea of the effects of fiscal policy on output and prices, when determining theentire effects of fiscal policy on an economy, it is important to incorporate the current economic climate into fiscal decision.

 

To summarize:

Fiscal policy changes that shift the Aggregate Demand curve to the right are:

  • Increase in G
  • government spending
  • Increase S
  • subsidies
  • Decrease in T
  • taxes

Fiscal policy changes that shift the Aggregate Demand curve to the left are:

  • Decrease in G
  • government spending
  • Decrease S
  • subsidies
  • Increase in T
  • taxes

FAQS about FRED

FAQs about FRED

Some general links that will help with FRED:

1. What is FRED, and how do I get into it?

  • “FRED” stands for “Federal Reserve Economic Data” and is a collection of publicly available data maintained by the Federal Reserve Board of St. Louis.
  • FRED may be accessed at FRED. Upon entering the web site, either create a password (“register”) or use an already created password (“sign in”). The links to do this are found in the upper right-hand corner of the page.

2. How do I create a graph from a data set I am interested in using?

  • To find a data set, search using a keyword, and then select the appropriate data set from the list that appears. (Be sure to pay attention to which years are available for use. A companion collection of historical data is also available for earlier years.)
  • Upon selecting a data set, a graph of that data will appear on your screen.

3. How do I change the years covered by a graph?

  • Above your graph will be two spaces indicating the years that the graph is illustrating.
  • To change a year, click on the appropriate box and move the cursor through possible years until the correct one appears. Once in a year, select the appropriate month for that year.
  • Change the Time Range

4. How do I change the type of graph?

  • Go to “Format” and change the type of graph to the one desired. For example, you can create a scatter plot or a line graph using this dialogue box.

5. How do I create a two-dimensional graph?

  • Go to “edit graph” and you will be able to add a variable to your graph.
  • The first variable entered will become the variable on the vertical axis, while the second will be the variable on the horizontal axis. If you want to, you can in “Format” when editing the graph.
  • Customize Data, Add Series to Existing Line

6. How do I change a graph?

  • Once a graph is created, go to “edit graph” to make changes. In this dialogue box, you can make many changes. Some possible changes include adding more variables, changing which variable appears on the horizontal or vertical axis, changing the type of graph, and changing the dimensions of the graph.
  • Format the Graph and Line Settings

7. How do I save a graph?

  • In FRED, with your graph on the page, go to “Account tools” and click on “Save Graph”. This will bring up a dialogue box that will allow you to name your graph.
  • Save Your Graphs

8. How do I download data into a spreadsheet?

  • With the graph on the page, go to the “Download” button in the upper right hand corner of the page. Once there, select “CSV” from the options, and the data will soon appear in a spreadsheet.
  • Downloading Data from FRED

9. How do I do statistics with my data?

  • Use the statistical tools from CSV or Excel to do statistical analysis. You may need to upload a supplementary tool to allow you to do more advanced statistics, such as some types of regressions.

  10. How do I calculate a correlation coefficient in CSV?

  • To calculate a correlation coefficient in CSV, download your data and open as a spreadsheet. Once in the data, click on “Data”.
  • An option will appear on the upper right hand side that says “Data analysis”. Click on this, and a list of possible statistical options will appear. Click on “correlation”.
  • Once in “correlation”, highlight the part of your data set that you want to use to calculate a correlation coefficient (you may need to move columns around to be able to do this.) As you highlight the correct rows and columns (be sure you are calculating the coefficient for the correct parameter; either “rows” or “columns”), the labels for these spaces will appear in the dialogue box. Once they are correct, click on “ok”. A correlation coefficient will appear on the spreadsheet.
  • The  correlation coefficient, “r” is a numerical value that summarizes that relationship between two variables. Values close to 1 and negative 1 indicate a strong relationship, while values close to zero indicate very little relationship between two variables.
  • Calculating Correlation Coefficient R (Video)

11. How do I share graphs?

  • Go to “share links” and click on “paper short URL” to have the program create a shareable URL link for your graph.
  • Share my FRED Graph

12.  How do I re-access graphs I have created?

  • Go to “Account tools” and select “My Account” The graphs you have saved will appear, along with a notation as to when they were created.

 

Works cited in “FAQS about FRED”

Federal Reserve Board of St. Louis. “FRED: Economic Research” Retrieved on October 27, 2018 from https://fred.stlouisfed.org/.

Federal Reserve Board of St. Louis. “FRED: Master 10 tools in 10 minutes” Retrieved on October 27, 2018 from https://news.research.stlouisfed.org/2016/01/fred-master-10-tool-in-10-minutes/

Federal Reserve Board of St. Louis. “Frequently Asked Questions”  Retrieved on October 27, 2018 from https://fredhelp.stlouisfed.org/#fred-faq-frequently-asked-questions.

Federal Reserve Board of St. Louis. “Getting to Know FRED: Changing the Time Range” Retrieved on October 27, 2018 from https://fredhelp.stlouisfed.org/fred/graphs/customize-a-fred-graph/change-graph-time-range/

Federal Reserve Board of St. Louis. “Getting to Know FRED: Customize Data, Add Series to Existing Line.” Retrieved on October 27, 2018 from https://fredhelp.stlouisfed.org/fred/graphs/customize-a-fred-graph/data-transformation-add-series-to-existing-line/

Federal Reserve Board of St. Louis. “Getting to Know FRED: Downloading Data from FRED” Retrieved on October 27, 2018 from https://fredhelp.stlouisfed.org/fred/data/downloading/using-the-download-data-link/

Federal Reserve Board of St. Louis. “Getting to Know Fred: Save Your Graphs” Retrieved from https://fredhelp.stlouisfed.org/fred/account/fred-account-features/save/

Federal Reserve Board of St. Louis. “How can I find Data on FRED?” Retrieved on October 27, 2018 from https://fredhelp.stlouisfed.org/#fred-data-how-can-i-find-data-on-fred

Federal Reserve Board of St. Louis. “Getting to Know FRED: How Can I Share My FRED Graph?” Retrieved on  October 27, 2018 from https://fredhelp.stlouisfed.org/category/fred/graphs/share-my-fred-graph/

Kahn, Sal. “Calculating Correlation Coefficient r (video with text)” Retrieved on October 27, 2018 from https://www.khanacademy.org/math/ap-statistics/bivariate-data-ap/correlation-coefficient-r/v/cal

Note: each instructor should decide for themselves whether calculating a correlation coefficient in FRED is accessible to their students' level of math skills.