Friday, April 17 - Tuesday, April 21, 2009

Monetary Policy

OBJECTIVES 

Students shall be able to

  1. Identify the goals of monetary policy.

  2. List the principal assets and liabilities of the Federal Reserve Banks.

  3. Explain how each of the three quantitative controls may be used by the Fed to expand and to contract the money supply.

  4. Describe three monetary policies the Fed could use to reduce unemployment.

  5. Describe three monetary policies the Fed could use to reduce inflationary pressures in the economy.

  6. Explain the cause effect chain between monetary policy and changes in equilibrium GDP.

  7. Demonstrate graphically the money market and how a change in the money supply will affect the interest rate.

  8. Show the effects of interest rate changes on investment spending.

  9. Describe the impact of changes in investment on aggregate demand and equilibrium GDP.

  10. Contrast the effects of an easy money policy with the effects of a tight money policy.

  11. Identify the federal funds rate and its importance for monetary policy.

  12. List four shortcomings and three strengths of monetary policy.

  13. Explain the net export effect of an expansionary and a contractionary monetary policy.

  14. Define and identify terms and concepts at the end of the chapter.
     

ACTIVITIES

  1. Complete a worksheet on Chapter 15 on Monetary Policy.

  2. Students shall complete a Microsoft Excel chart comparing tools of fiscal and monetary policy.

Assignments:

  1. Complete "Monetary Policy." [Word or PDF]

  2. Complete Excel chart on tools of fiscal and monetary policy.

  3. Study for the Monetary Policy test on Wednesday.

 

ASSESSMENT PROCEDURES

Monitor and adjust to check understanding. Collect and grade worksheets and grade charts in the inbox.