Ch. 15 Reading Guide

Due Tues:


1.  Study the roles/responsibilities of the components of the Federal Reserve from today's class.


2.  Define each of the  Federal Reserve's monetary policy tools:
a.  Open-market operations
b.  Reserve ratio (requirement)
c.  Discount rate


3.  Define easy money policy and tight money policy.




Due Wed:


1.  Graph the sequence of events that transpire when the Fed implements monetary policy.  Use a money market, investment demand curve, and finally an AS/AD diagram.  Complete this task for.
a.  Easy money policy starting at a recessionary gap
b.  Tight money starting at an inflationary gap.
Textbook page 279 will assist you with any problems.




Due Thurs:
Not in your textbook.  Be resourceful! 


1.  Who was Milton Friedman and what were some of his popular ideas/theories?
2.  Explain "Monetarism"






Friday will be a catch up/summary/review day.  The Monetary Policy Exam will take place on Monday, 3/9.  This test will include elements of Ch. 13, 14, and (primarily) 15.  You will need study for this one.  Start early.