1. AP ECONOMICS: November 5
Warm-up What is the maximum increase in the money supply (MS) as a result of the following actions (see HO from last class)? rr=.1 A. Fred deposits $1,000 of cash from his pocket.
B. Fed buys $1,000 of bonds on the open market.
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: (1) ultimately determine the amount of maximum deposit expansion when given multiple amounts of checkable deposits, required reserves, and loans; (2) set up and interpret T-accounts; and (3) apply the money multiplier. --(Money Creation): conclude Activity 4-3 (HO from earlier) --Monetary and Fiscal Policy Mix—Making the Connections Fiscal (HO from earlier)—important to know for long FRQ
Assignment
--MCT #4 Practice Questions (HO from earlier)
--review Unit 4 GC videos
FRQs #6 & #7 are WEDNESDAY (short: deposit expansion, T-account, money multiplier, etc.) (long: AD-AS, fiscal policy, monetary policy, self-correction) MCT #4 is THURSDAY
Fed Video Guide; Self-Correction & MP Quiz; MP-FP Quiz due by mid-class TOMORROW