Assignment Instructions/ Description
Discussion and answers paragraph format. Include all references and in text citations.1. How do economists integrate the international sector (exports and imports) into the aggregate expenditures model?2. How do economists integrate the public sector (government expenditures and taxes) into the aggregate expenditures model?3. Why the U.S. banking system is called a "fractional reserve" system?4. How can a bank create money?5. How is the equilibrium interest rate determined in the market for money?6. What are the goals and tools of monetary policy?7. What are the key facts about international trade?8. How do differences between world prices and domestic prices prompt exports and imports?
10. Watch the "Money Multiplier" video. Consider the following as you watch: • This video explains the multiplier effect. How does the multiplier facilitate the creation of money? Note: Be careful you do not confuse the monetary multiplier with the "multiplier effect" that is associated with gross domestic product (GDP) and is also referred to as the spending multiplier or the GDP multiplier.
9. Recall the readings and activities you have completed this week and describe the one or two points that were least clear to you. What questions do you have that would help you understand these points better?
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