2. Difference between M1 and M2 money supply?
3. What happened when housing prices rose or fell? What can a homeowner do?
4. *Difference between expansionary, contractionary, monetary and fiscal policy.
5. * num. 4
6. * num. 4
7. * num. 4
8. * num. 4
9. * num. 4
10. * num. 4
11. When housing prices fell, what did lenders do?
12. Why can the federal reserve not target the money supply and the interest rate at the same time?
13. What does an increase in income tax do to disposable income?
14. What does it mean if the economy is producing at potential GDP?
15. Difference between opened and closed economy?
16. Balance of payments (current, capital, financial accounts)
17. * num. 16
18. * num. 16
19. * num. 16
20. Simple exchange rate problem.
21. Difference between appreciation and depreciation.
22. * num. 21
23. What makes up the federal open market committee?
24. What did TARP do?
25. What is a multiplier effect?
26. Relationship between short-run Phillips curve in terms of unemployment and inflation.
27. Know how to compute multiplier effect.
28. Difference between deflation, inflation, and hyperinflation.
29. What was top policy goal for Paul Volker in 1979?
30. What is fiat money?
31. Difference between commodity money and fiat money.
32. What is main tool the fed uses to conduct monetary policy?
33. Understand how t-accounts work for a bank?
34. What are the fed’s four monetary