Assignment:
These are simple questions and answers:
Questiojn 1. What are the uses of money? How do commercial banks and Federal banks create money? Is monetary policy conducted independently in the United States? Explain your answer. Is it important for monetary policy to remain independent from all parties? Why or why not?
Question 2. Do you think the use of credit cards creates money?
Question 3. What is the fractional reserve system and how does it create money??
Question 4. Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation? What is their solution for stabilizing economic fluctuations? Why do they believe changes in government spending affect the economy differently than changes in income taxes?
Question 5. How do we reconcile some of the election rhetoric that indicated free trade agreements might be canceled?