Economics – 12/20/12

I.  Bellwork:  Q&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%

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

II. Objective

  • Demonstrate an understanding of the Federal Reserve, its role, and the use of monetary policy.

III. Project Due Tomorrow

IV.  Discussion

V.  Chapter 14 Test Tomorrow

Know:

  • Barter Economy
  • Commodity Money
  • Characteristics of Money
  • Functions of Money
  • Reserve Requirement Worksheet
  • Monetary Policy Tools Expand & Contract (Fig. 14.6)
  • Tight & Easy Money Policy
  • Monetary Policy (easy a & tight) impact on interest rates
  • Figure 14.4 page 402

VI.  Classwork

  • Page 399 Content Vocabulary (13)
    Page 407 Q&A 2-8


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