week 5 discussion economics

Must answer each question in 125 word count or more!

Week 5 Economics -Discussion Questions

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Economics, Ch. 29: The Aggregate Expenditures Model

Read pages 643-646.

Consider the following as you read:

  • How do economists integrate the international sector (exports and imports) into the aggregate expenditures model?
  • How do economists integrate the public sector (government expenditures and taxes) into the aggregate expenditures model?

Economics, Ch. 33: Money Creation

Read pages 731-743 of Economics.

Consider the following as you read:

  • Why is the U.S. banking system called a “fractional reserve” system?
  • How can a bank create money?

Read pages 731-743 of Economics.

Consider the following as you read:

  • Why is the U.S. banking system called a “fractional reserve” system?
  • How can a bank create money?

Economics, Ch. 34: Interest Rates and Monetary Policy

Read pages 752-769 of Economics.

Consider the following as you read:

  • How is the equilibrium interest rate determined in the market for money?
  • What are the goals and tools of monetary policy?

Economics, Ch. 34: Interest Rates and Monetary Policy

Read pages 752-769 of Economics.

Consider the following as you read:

  • How is the equilibrium interest rate determined in the market for money?
  • What are the goals and tools of monetary policy?

Economics, Ch. 38: International Trade

Read pages 839-854 and 857-865 of Economics.

Consider the following as you read:

  • What are the key facts about international trade?
  • How do differences between world prices and domestic prices prompt exports and imports?