Description                                  
An examination of Marge's Ostrich Burger business demonstrates how monetary policy influences aggregate economic activity.  

Marge: 
There... I hope I can attract good workers at that wage. Seems that no one is willing to work for minimum wage anymore. It's just not enough to live on, let alone raise a family.  

Marge: 
I've been feeling the pinch myself lately. Prices for supplies keep going up... I've had to raise the price of O'burgers to cover the higher costs. People don't seem to mind though. They keep coming in... buying more burgers. In fact, I'm selling more than I ever have.  

Customer #1: 
I'm really hungry... I could eat a bunch of burgers. 

Customer #2: 
Seven burgers....and four O'nuggets please. 

Customer #3: 
Mmmmmm.... I'm hungry. 

Customer #4: 
Five O'burgers please. 

Max: 
Talking to his friend. Hey... I'll buy you lunch. I just got a raise. 

Marge: 
I can barely keep up with demand. You know, I really need to expand the restaurant but I can't do it without some cash. Looks like I might have waited just a little too long to apply for a loan though. Interest rates just went up again.. 

Narrator: 
Marge would like to borrow money from the bank. But, banks have just raised their interest rates. What Marge may not know is that this rate increase was in response to a decision by the Federal Reserve Bank to tighten the money supply in the economy. Attempts to influence the economy by changing interest rates or the money supply are known as monetary policy. In the United States, such policy is carried out through the actions of the Federal Reserve Bank.  

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