Economics – 5/23/12
I. Bellwork: Q&A
A. By how much will the money supply increase if
- $25,000 is deposited and the reserve requirement is 10%
- $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
- Free Enterprise Activity 20
- Page 399 Content Vocabulary (13)
Page 407 Q&A 2-8
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