1. AP ECONOMICS: March 26
Warm-up --Interest rates rise from 1% to 4%. How would this impact money demand in terms of transactions demand and asset demand? AP Economics Learning Target #1 In order to understand how economic policy works, I will learn how economic policy changes impact the money market. I will know I have it when, on a money market graph, I can illustrate the implementation of (1) fiscal policy; and (2) monetary policy. Conclude Money Market Notes --MD curve shifters and shifts; MS shifters and shifts --economic policy and the money market (HO) AP Economics Learning Target #2 In order to understand some basics of financial assets, I will analyze the role of stocks, bonds, and money in the economy. I will know I have it when I can: (1) explain the relationship between existing bonds and interest rates; and (2) rank assets in terms of liquidity. --what’s the relationship between bond prices & interest rates? Why? --ranking liquidity: car, bonds, bank CD, currency, real estate Assignment --study for money market, fiscal policy connections, and self- correcting mechanism quiz (quiz is on Wednesday)
--read Module 27; watch Mr. Clifford’s videos (AC-DC Economics)