Lesson 23 Monetary Policy

  • Lesson 23 Monetary Policy

    • Goals File

      Once you have completed this chapter, you should be able to:

      •Define and understand the general purpose of monetary policy
      •Understand the purpose and organization of the Bank of Canada
      •Explain the difference between easy money and tight money monetary policies
      •Appreciate the importance of interest rates to the economy, and understand how they are set
      Monetary Policy Stock Illustrations – 1,034 Monetary Policy Stock Illustrations, Vectors & Clipart - Dreamstime

    • Icebreaker FORUM 23

      What is aggregate demand?


    • Lesson 23 Glossary

      •interest rate
      •monetary policy
      •bank note
      •foreign exchange reserve
      •easy money policy
      •tight money policy

    • Discussion Forum 23

      Explain why the sales of big-ticket consumer goods such as cars and houses or condos are sensitive to changes in interest rates. How will a decline in rates affect aggregate demand throughout the economy compared to an increase in rates?


    • Group Assignment

      Work in a group, then make a group  presentation.

    • Lesson 23 Exit Card Questionnaire

      Students to complete this after you've finished all activities/tasks in today's lesson.

    • Answers:

      1. B) Increase in investment

      2. D) Negative supply shock

      3. B) Shifts to the left

      4. A) Shifts to the right

      5. A) Shifts to the right



    • Answers

      Answers:

      1. B) Market forces decrease rates and stimulate the economy

      2. C) Increase in interest rates leads to an increase in the value of the Canadian dollar, making exports more expensive

      3. B) By earning interest on loans

      4. B) To assess the stability and liquidity of the bank

      5. A) To save time and effort