Problem 1. Why doesn't the government pay for all its goods simply by printing money?
Problem 2. What was the cause of the S & L crisis? What role did the government guarantees play in that crisis?
Problem 3. Is the current US Banking system susceptible to panic? If so, how might a panic occur?
Problem 4. You can lead a horse to water, but you can't make it drink. How might this be relevant to expansionary (as opposed to contractionary) monetary policy?
Problem 5. Which is considered the more effective tool: monetary or fiscal policy? Why?
Problem 6. What are two ways government can finance a budget deficit?
Problem 7. "The deficit should be of concern." What additional information do you need to undertake a reasonable discussion of this statement?