## Unit Four: The Financial Sector

1. Discussion on Savings and Investments, and how to calculate National Savings. Note can be found here: Capital (Saving and Investment); Saving and Investment in the National Economy; and Saving and Investment in the Global Economy. Assignments: Read pp. 616-621; Answer & Look #1-3 (p.621); Activity 22 (Investment Demand), which is due on Wednesday. [3/13]

2. Discussion on the Loanable Funds Market and interest rates (real and nominal), the crowding-out effect, and the Barro-Ricardo effect. Notes can be found here: Interest Rates and Inflation [Note: formula for interest rates is

4. Discussion on Financial Systems. Assignments: Read pp. 629-633; and Answer #1, 5, 6, & 8 (pp. 634-35), due on Monday. [3/15]

5. Discussion on Financial Fluctuations. Assignments: Read pp. 693-699; Answer and Look #1 & 2 (p. 699); Answer #1 & 2 (p. 716)--due on Monday. [3/16]

6. Discussion on Fiscal Policy: notes on Federal Budgets and Policy. Assignments: Read pp. 699-708; Answer and Look #1 & 2 (p.704), and #1 (p.708); Act 5-1 and 5-6 , both of which are due on Tuesday. [3/17]

7. Finished discussion on Fiscal Policy, specifically Fiscal Policy Multipliers. Assignments: Read pp. 708-714; Act 3-2 and Act. 31. both due on Wednesday. [3/20]

8. Began talk on long run fiscal policy. Assignments: read pp. 721-728; Answer and Look #1 & 2, pp. 729-30; Answer #5, 8, 12, & 14 pp. 717-718--due Thursday. [3/21]

9. Finish discussion on long-term fiscal policy. Introduction to the concept of money. Assignments: read pp. 730-738; answer #2, 5, & 9 (pp. 740-741)--due Friday; and Activity 4-1 (Money and Financial Assets)--due Friday. [3/22]

10. Introduction to the structure and operations of the Federal Reserve System (

11. Discussion on the traditional monetary policy tools of the Fed: open market operations (OMO); the discount rate; the federal funds rate; and the reserve ratio. Also introduced the money market model, with the nominal interest rate and the quantity of money being graphed. Assignments: read pp. 755-764; Answer and Look #1 and 2, p. 754; complete Activities 4-2, 4-4, and 4-8 by Wednesday. Also distributed the Unit IV Exam Review, for the Free Response portion taken on Wednesday and the Multiple-Choice portion on Thursday. [3/24]

12. Discussion on the new monetary policy tools introduced during the Great Recession of 2007-09, along with examples of how the Fed conducts monetary policy. Assignments: complete Activities 4-7 by Wednesday. [3/27]

13. Review for Unit 4 exam on the financial sector. [3/28]

14. Unit 4 exam on on the financial sector for the next two days. Free Response Questions portion take on Wednesday April 10, and the Multiple-Choice portion taken on Thursday April 11. [3/29--30]

15. Read pp. 776-780. Re-read pp. 760-64. [3/30]

Spring Break begins! See you all on April 7th!

2. Discussion on the Loanable Funds Market and interest rates (real and nominal), the crowding-out effect, and the Barro-Ricardo effect. Notes can be found here: Interest Rates and Inflation [Note: formula for interest rates is

**real int. rate = nominal int. rate - inflation rate**.]; Assignments: Read pp. 621-628; Answer and Look #1 &2 (pp. 628-629); Read Peggy Pride article on the loanable funds market. (Mark the text as well, circling vocabulary terms and underlining main ideas.) Act 22, Act 4-5, Act 4-9, and Act 5-7 all due on Friday. [3/14]4. Discussion on Financial Systems. Assignments: Read pp. 629-633; and Answer #1, 5, 6, & 8 (pp. 634-35), due on Monday. [3/15]

5. Discussion on Financial Fluctuations. Assignments: Read pp. 693-699; Answer and Look #1 & 2 (p. 699); Answer #1 & 2 (p. 716)--due on Monday. [3/16]

6. Discussion on Fiscal Policy: notes on Federal Budgets and Policy. Assignments: Read pp. 699-708; Answer and Look #1 & 2 (p.704), and #1 (p.708); Act 5-1 and 5-6 , both of which are due on Tuesday. [3/17]

7. Finished discussion on Fiscal Policy, specifically Fiscal Policy Multipliers. Assignments: Read pp. 708-714; Act 3-2 and Act. 31. both due on Wednesday. [3/20]

8. Began talk on long run fiscal policy. Assignments: read pp. 721-728; Answer and Look #1 & 2, pp. 729-30; Answer #5, 8, 12, & 14 pp. 717-718--due Thursday. [3/21]

9. Finish discussion on long-term fiscal policy. Introduction to the concept of money. Assignments: read pp. 730-738; answer #2, 5, & 9 (pp. 740-741)--due Friday; and Activity 4-1 (Money and Financial Assets)--due Friday. [3/22]

10. Introduction to the structure and operations of the Federal Reserve System (

*i.e.*the Fed). Introduced concepts of T-accounts, money creation by banking system, and monetary policy. Assignments: Read pp. 742-754; Answer and Look #1, p.749; and complete Activities 4-3 and 4-6 by Monday. [3/23]11. Discussion on the traditional monetary policy tools of the Fed: open market operations (OMO); the discount rate; the federal funds rate; and the reserve ratio. Also introduced the money market model, with the nominal interest rate and the quantity of money being graphed. Assignments: read pp. 755-764; Answer and Look #1 and 2, p. 754; complete Activities 4-2, 4-4, and 4-8 by Wednesday. Also distributed the Unit IV Exam Review, for the Free Response portion taken on Wednesday and the Multiple-Choice portion on Thursday. [3/24]

12. Discussion on the new monetary policy tools introduced during the Great Recession of 2007-09, along with examples of how the Fed conducts monetary policy. Assignments: complete Activities 4-7 by Wednesday. [3/27]

13. Review for Unit 4 exam on the financial sector. [3/28]

14. Unit 4 exam on on the financial sector for the next two days. Free Response Questions portion take on Wednesday April 10, and the Multiple-Choice portion taken on Thursday April 11. [3/29--30]

15. Read pp. 776-780. Re-read pp. 760-64. [3/30]

Spring Break begins! See you all on April 7th!