Discussion topics

Each question must be 200 words minimum

1. What are the key facts about international trade?

2. How do differences between world prices and domestic prices prompt exports and imports?

3. How do economists integrate the international sector (exports and imports) into the aggregate expenditures model?

4. How do economists integrate the public sector (government expenditures and taxes) into the aggregate expenditures model?

5. Why is the U.S. banking system called a “fractional reserve” system?

6. How can a bank create money?

7. How is the equilibrium interest rate determined in the market for money?

8. What are the goals and tools of monetary policy?

Solution Preview

1. What are the key facts about international trade?
International trade refers to trade between nations. Nations are differentiated by political sovereignty which affects some factors including national currency since its quantity and values area affected by national control. This differentiation has become a defining aspect of countries especially with the increase in government management and planning and nationalism.

(1,763 words)