- Under what circumstances would the Federal Reserve Board seek to expand the money supply? What tools would it use to do?
- What are three major differences between the Classical and Keynesian Models of the economy?
- Differentiate between tariffs and quotas. Explain the effect of each on international trade. Why would governments want to impose tariffs and quotas?
- Differentiate between fixed and floating exchange rates. How would a country maintain fixed exchange rates?
- What is the Crowding Out effect of fiscal policy? What are its likely consequences?