Economics – 5/23/12

I.  Bellwork:  Q&A

A.  By how much will the money supply increase if

  1. $25,000 is deposited and the reserve requirement is 10%
  2. $25,000 is deposited and the reserve requirement is 5%

B.  List 3 ways the Fed can increase the money supply

II. Objective

  • Identify how the Federal Reserve uses monetary policy as a means to achieve macroeconomic goals

III.  Review

IV.  Chapter 14 Test Tomorrow

Know:

  • Reserve Requirement Worksheet
  • Monetary Policy Tools (Fig. 14.6)
  • Tight & Easy Money Policy
  • Monetary Policy impact on interest rates
  • Figure 14.4 page 402

V.  Classwork


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