handouts & visuals especially helpful

• Functions of Money  (vis. 4.1) (activity #34)

• Open Market Operations & their impact on 
  the Money Supply

• Characteristics of Money  (activity #34)

• 3 Major tools used by the Federal Reserve for 
  Monetary Policy: (vis. 4.4) (activity #39-40)

• Fiat Money

1. Reserve Ratio  (Raise or Lower)
2. Discount Rate    (Raise or Lower)
3. Open Market Operations  (Buy or Sell Securities)

• Monetary Equation of Exchange
  MV=PQ  (vis. 4.2)     (activity #36)

• Understand the impact of each tool

• Required Reserves & Excess Reserves
  What are they?  Implications?

• Impact of changes in the Money Supply on:
  Int. Rates, Investment, Real GDP, Employment, Price

• Expansion of the Money Supply (vis. 4.3) 
  & Contraction of the Money Supply
  (activity #37)

• Expansionary Monetary Policy (vis. 4.5)

• Be able to calculate the Money (Deposit) Multiplier

• Contractionary Monetary Policy (vis. 4.6)

• List & Explain Leakages in the Money Supply

• Keynesians like Fiscal Policy because Monetary Policy 
  involves borrowing decisions of firms & consumers. 
  Fiscal Policy works directly on AD while Monetary
  affects AD indirectly through interest rates