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Lesson Plan

Econ Ed Link: Multipliers and the Mystery of the Magic Money

Curated by ACT

Students learn about the purpose of the reserve requirement, how money is "created" in the economy through fractional reserves, and how the Federal Reserve uses the reserve requirement and loans to correct economic instability.

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Concepts
banking, deflation, inflation
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Additional Tags
central banking system, council for economic education, econedlink, supply, tools of the federal reserve, federal reserve system
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Classroom Considerations
  • Knovation Readability Score: 5 (1 low difficulty, 5 high difficulty)