Problem 1. Discuss the conceptual similarities between the government expenditures multiplier and the money multiplier.
Problem 2. The yield curve reflects interest rates over different maturities for a given debt instrument, like 10-year treasury bonds, or 3-month treasury bills, as well as private debt. What can you conclude about an upward sloping yield curve? What if the yield curve becomes inverted (downward sloping)?
Problem 3. What does it mean if we have a "strong dollar" or a "weak dollar" in the context of exchange rates? Do you believe that the dollar is "strong" or "weak" at this time and how does this impact consumers, businesses, and the economy as a whole?
Problem 4. Explain why fiscal policy will be either more or less effective in an economy with a large foreign sector.