1. 1. Compared to fiscal policy, monetary policy has the disadvantage of having a less-direct impact on the economy than fiscal policy.

Monetary Base:
  1. 1. If Federal Reserve notes and coins are $765 billion, and banks’ reserves at the Fed are $8 billion, the gold stock is $11 billion, and the Fed owns $725 billion of government securities, what does the monetary base equal?

1. Go to the Powerpoint Attached below. Take notes on the definitions and do the practice problems. Every piece of information in this powerpoint is relevant for the exam. Ask Mr. Beem if you have any questions.

2. Go to the Fed Chairman Game website and take the role of Fed Chairman by playing the game. You will set the interest rate in an attempt to stabilize unemployment and inflation. Play the game at least 3 times (it is short), and answer the questions on the "Fed Chairman Game" form below. Submit when complete.

3. Below the "Fed Chairman Game" is another form that asks this question. "What is the most valuable thing you have learned about Macroeconomics this semester? Explain." Answer that question in paragraph form.

4. If you would like to start studying for Tuesday's exam, the study site is linked here.