Now that your young economists have had an introduction to how the money multiplier affects money supply in general, use this instructional video to guide them in practicing how to calculate the change in money supply given difference scenarios and reserve requirement amounts.

Concepts

money supply, monetary policy, macroeconomics, the federal reserve system, government bonds

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Additional Tags

social studies

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Instructional Ideas

• Consider offering this series as a supplemental study aid or flipped classroom learning resource
• Rather than provide this video directly to students, use it as a model for your own instruction and in-class practice

Classroom Considerations

• This is the sixth video in a series of eight designed for AP macroeconomic students to introduce monetary policy and how the Federal Reserve System makes changes to the money supply 

• This video is hosted on YouTube

Pros

• Instructor works through five different scenarios step by step
• Uses whiteboard to illustrate work and concepts

Cons

• Content explained fairly quickly; be ready to pause video to explain concepts, or provide as a homework assignment for students to move through at their own pace

Common Core

SL.11-12.5 RH.11-12.3 RH.11-12.4 RH.11-12.7