8- SUBSTANTIVE POST 50-75 WORDS EACH- Principles of Macroeconomics, 7 EDITION, CHAPTER 16-19 1

Principles of Macroeconomics, Ch. 16: The Monetary System

  1. Consider what distinguishes money from other assets in the economy.
  2. Consider what is commodity money and fiat money, and which kind we use.
  3. Consider what demand deposits are and why they should be included in the stock of money.
  4. Consider who is responsible for setting monetary policy in the United States. How is this group chosen?

Principles of Macroeconomics, Ch. 17: Money Growth and Inflation

  1. Consider how to explain how an increase in the price level affects the real value of money.
  2. Be able to explain the difference between nominal and real variables and give two examples of each.
  3. Consider the costs of inflation. Which of these costs do you think are most important for the U.S. economy?

Principles of Macroeconomics, Ch. 18: Open-Economy Macroeconomics — Basic Concepts

  1. Consider how to define net exports and net capital outflow.
  2. Consider how to explain the relationship among saving, investment, and net capital outflow.
  3. Consider how to describe the economic logic behind the theory of purchasing-power parity.

Principles of Macroeconomics, Ch. 19: A Macroeconomic Theory of the Open Economy

  1. Consider how to describe supply and demand in the market for loanable funds and the market for foreign-currency exchange. How are these markets linked?
  2. Consider why are budget deficits and trade deficits sometimes called the twin deficits?

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