Economics – 5/29/13
I. Bellwork: Q&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%
- 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. Reserve Requirement Quiz
IV. Discussion
V. Chapter 14 Test on iLearn closes Friday @ 3:00
Know:
- M1 & M2
- FDIC
- 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:
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