Week 17, Syllabus

Mr. Ditzenberger-Economics
Lessons: Taxes and Government Spending Time: Week 17, May 12th-16th Unit: Government and the Economy
Objectives:
1. Students will describe the process of money creation.
2. Students will explain why some monetary tools are favored over others.
3. Students will explain the problems of timing and policy lags in shaping the economy and the challenges of predicting the business cycle.
4. Students will analyze the importance of imports and exports to the US economy.

Monday
1. Chapter 16, Section 3
a. Money Creation-read the section and explain how banks create money and how the money multiplier effect works.
b. Reserve Requirements-how could changing the RRR slow the economy or help stimulate the economy?
c. Setting Rates-what function does the discount rate primarily serve in the economy? What is the prime rate?
d. Open Market Operations-how do bond purchases and sales increase/decrease the money supply?
e. Using Monetary Policy Tools-why does the fed choose not to use the discount rate and the RRR to conduct monetary policy?
f. Homework: answer one through eight on page 429. Due Tuesday.
g. Test on Thursday.

Tuesday
1. Chapter 16, Section 4, Monetary Policy and Macroeconomic stabilization
2. Homework-find a current event article related to the fed/central bank in your country.

Wednesday
1. Chapter 16 Assessment. Do as a class.

Thursday.
1. Unit 6 Test

Friday.
1. Chapter 17, Section 1, Why Nations Trade. Lecture.