1. AP ECONOMICS: November 1
Warm-up: What is the maximum increase in the money supply (MS) as a result of the following actions (see HO from yesterday)? Reserve requirement is 10% A. Fred deposits $1,000 of cash from his pocket.
B. The Fed buys $1,000 of bonds on the open market. A.P. Economics Learning Target In order to understand how the money supply grows, I will learn the concept of fractional reserve banking. I will know I have it when I can demonstrate the process of multiple deposit expansion and money creation through the use of: (1) T-accounts; and (2) the money multiplier.
--(Money Creation (begin at 2:17)) then conclude Activity 4-3 (HO)
Assignment:
--work on MCT #3 practice questions (HO)
MAKEUP WORK MUST BE COMPLETED TOMORROW BY 8:40! Friday: MCT #3, Part 1 Monday: TW #6 (short) and #7 (long)
Tuesday: MCT #3, Part 2