Indiana Social Studies GE.5.2

Social StudiesGrades 9–12Money and Banking: Role of Monetary and Fiscal Policies

The Standard

Differentiate between monetary policy and fiscal policies.

2026 Indiana Academic Standards: K-12 Social Studies

Teacher's field guide

What Students Need to Do: Students tell apart actions taken by the Federal Reserve and actions taken by Congress and the president. They explain how changing interest rates or buying bonds differs from changing taxes or government spending.
What Mastery Looks Like: Given a Fed rate cut and a federal tax cut, a student labels the first monetary and the second fiscal. They name who makes each decision and predict one likely effect on borrowing or spending.
Common Misconceptions: Students may think Congress sets interest rates or the Fed changes tax rates. They may assume a rate cut immediately raises everyone's income, rather than making borrowing cheaper over time.
How to Assess It: On an exit ticket, ask: The Fed cuts its target interest rate, and Congress raises taxes to fund roads. Label each action, name who decides it, and explain one likely effect of each.

Lesson moves

Give pairs cards labeled 'rate cut,' 'bond purchase,' 'tax increase,' and 'road funding'; have them sort the cards under Fed or Congress.
Ask students to write three sentences comparing a Fed rate cut with a congressional tax cut: who decides, what changes, and who might spend more.
Read 'Fed buys bonds,' 'Congress raises taxes,' and 'Congress funds schools'; students hold up M or F cards and defend their choices.
Show a sample mortgage offer and pay stub; students circle the interest rate and tax withholding, then identify whose actions could change each.

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