Monday, March 13, 2017

Monetary M/C Practice Answer Key

Feel free to e-mail me with any questions.  I will check my e mail on Monday night and  once or twice on Tuesday before 9pm "if" I don't see you tomorrow. 
1e
2b
3e
4a
5d
6a
7b
8d
9e
10d
11b
12d
13d
14b
15c
16b
17a
18a
19e
20d
21a
22b
23c
24a
25d
26d
27b
28b
29e
30b
31c
32e
33c
34e
35d
36a
37d
38e
39d
40b
41a
42c
43c
44b

Monday, February 13, 2017

Ch. 14 Reading Guide

Due Tues.
Ch. 14 is written in such a way that it can sometimes be more confusing than helpful.  Use the chapter as a reference to answer the questions, but you need not read the entire chapter.  Rely instead on your class notes and "Goldsmiths" story. 


1.  Why are banks required to hold reserves at all?
2.  Why do banks want to lend as much money as possible?
3.  Do you agree or disagree:  When cash is deposited in a bank, the money supply shrinks and interest rates rise.
4.  What is the money multiplier?  How is the money multiplier calculated?




Due Wed.
1.  Calculate the multiplier for reserve requirements of:  50%, 25%, 10%, 5%, 1%
2.  Describe the relationship between the RR and the MM.
3.  Describe the relationship between the RR and the Sm.
4.  On money market graphs, illustrate the impact of increases and decreases of the reserve requirement.
5.  How do changes in the reserve requirement impact interest rate?

Monday, January 30, 2017

Ch. 13 Reading Guide

Due Tues. 1/31
1.  Explain each of the 3 Functions of Money
2.  Explain each of the 4 Characteristics of Money.
3.  Contrast Fiat and Commodity Money
4.  Identify the forms of money classicied as M1, M2, and M3 by the US Treasury.




Due Wed. 2/1
Read this article on the gold standard:   https://blogs.cfainstitute.org/investor/2013/04/16/gold-and-international-reserve-currencies/


Identify arguments for and against a gold-backed currency.  Find another article you believe to be useful to understanding this subject, print it, and bring it to class.




Due. Wed. 2/2
Create a properly labeled graph of the Money Market.
Identify the 3 types of Money Demand
Identify factors shifting the Ms curve and Md curve









Tuesday, January 3, 2017

Ch. 12 Reading Guide

Due Wed. 1/4/17


1.  Describe expansionary fiscal policy.  When would it be used?  What tools would government use to enact such a policy?  Illustrate the impact of expansionary fiscal policy on an AS/AD diagram originating from a recessionary gap.






2.  Describe contractionary fiscal policy.  When would it be used?  What tools would government use to enact such a policy?  Illustrate the impact of contractionary fiscal policy on an AS/AD diagram originating from an inflationary gap.










Due Thus. 1/5/17


1.  Identify and define each of the automatic/autonomous fiscal policy stabilizers.  Explain how each stabilizer would act without the actions of Congress and the President to impact the economy during an:
a.  time of recession/high unemployment
b.  time of inflation

Tuesday, December 20, 2016

Due Tues. 12/21

Using your Keynesian equilibrium chart from class, complete the following:


1.  Describe the C/DI relationship.
2.  Describe the S/DI relationship.
3.  Describe the APC/DI relationship
4.  Describe the APS/DI relationship.





Monday, December 5, 2016

Ch. 11 Reading Guide

Due Tues. 12/6


1.  Review the 3 explanations for the downward sloping aggregate demand curve.
2.  Identify each of the factors shifting AD.  How would each factor cause AD to increase?  Decrease?








Due Wed. 12/7


1.  Define short run aggregate supply (SRAS).
2.  Why is the SRAS curve upward sloping?
3.  Identify each factor shifting SRAS.  How would each factor cause SRAS to increase?  Decrease?






Due Friday. 12/9


1.  What is the Long Run Aggregate Supply Curve and why is it vertical?
2.  What does long run equilibrium (where LRAS and AD meet) tell us?

Budget/Spending Quiz

Review the following items to be successful on tomorrows very brief quiz:


1.  Concept and example of discretionary vs. non-discretionary (mandatory) spending


2.  Federal deficit vs. national debt


3.  Arguments to worry/not worry about the national debt.


4.  The federal budget process: 
a.  What is the role of the cabinet secretaries?
b.  What is the role of the President?
c.  What is the role of the Appropriations Committee?
d.  What is the role of the full Congress?