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.

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?






WASH YOUR CARS!  SALT IS THE ENEMY!

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?