Thursday, February 15, 2018

Classroom Code

Finish the film and complete the questions to turn in after the break.


Friday, February 2, 2018

Ch. 13 Review

1.  Be familiar with all 3 Functions of Money-what they are, and how an item can meet those functions.
2.  Be able to identify each component of the M-system of classification of the money supply.  Be able to explain how this system is based on the system of liquidity.  Make sure you can calculate each "M" and remember that this is a cumulative process.
3.  Explain the meaning of each characteristic of money and be able to apply each characteristic to US or foreign currency in assessing how well a form of money "works" insofar as promoting economic activity.
4.  Money Demand:  Be familiar with each type of money demand.  For each, be able to explain what types of transactions impact it, and be able to illustrate each on a money demand curve.
Types of money demand include:
a.  transactions demand for money
b.  asset demand for money
c.  total demand for money

Thursday, February 1, 2018

Ch 14. Assignment: Due Friday, 2/2

You should complete this assignment while you are in class today to avoid homework.  I am at Challenge Day in the gym all day today.  Chapter 14 is a difficult and tedious chapter to read, so please try to focus on the specific topics I have highlighted and not get lost in the banking transactions.

1.  Compare early banking (the goldsmiths) to modern banking (fractional reserve banking). 

2.  Define/describe each:
a.  Required Reserves
b.  Excess Reserves
c.  Total Reserves

3.  What is the Reserve Requirement (also called the required reserve ratio)?  Why was it created and by whom?

4.  Define:
a.  asset
b.  liability

5.  Create a list of banking transactions which count as assets and liabilities for a bank.

6.  What is the money multiplier?  Describe it in general terms and provide a formula.

Tuesday, January 30, 2018

Ch. 13 Assignments due 1/13

1. Provide an example of how US currency fulfills each of the 3 functions of money.
2.  Evaluate how well US currency meets each of the 4 characteristics of money.
3.  List each type of money in the US monetary system that is counted as part of:  M1, M2, and M3. 

4.  Define Transactions Demand for Money and provide an example. 
5.  Define Asset Demand for Money and provide an example.
6.  Copy and label a graph of the Money Market.

Monday, January 8, 2018

Fiscal Policy Assignment 2: The Multiplier

Ch. 12

1.  In a recessionary gap, how would each tool of fiscal policy be appropriately used:

Income taxes (t):

Government spending (gs):

2.  Which tool of fiscal policy, t or gs, is more "powerful"?  In essence, will a $1 change to t or a $1 change to gs have a more profound impact on AD?  Explain your answer.

Ch. 9
Return to Ch. 9 (which was not assigned).  Carefully read  the section on the multiplier starting on page 164).

1.  What is the  formula for the government spending multiplier?

2.  What is the relationship between the MPC and the multiplier?

3.  the MPS and the multiplier?


Tuesday, January 2, 2018

Ch. 12-Assignment 1 Due Wed. 1/3

Complete in your notebook for tomorrow:

1.  What is fiscal policy?
2.  What events made the concept of fiscal policy take root in America?
3.  Describe expansionary fiscal policy.  When would it be appropriate?  How would taxes and spending be utilized to implement it?
4.  Describe contractionary fiscal policy.  When would it be appropriate?  How would taxes and spending be used to implement it?

Monday, December 11, 2017

Assignment Due Tues. 12/12

Read ch. 9 p 152-156
Bea able to calculate C, S, APC and APS
Define MPC and MPS
Be able to calculate MPC and MPS
Contrast Average Propensities and Marginal Propensities

On your "Keynesian Chart" from class, complete the C, S, APC, and APS columns