for kim woods only

Economics, Ch. 29: The Aggregate Expenditures Model

Read pages 643-646. 

Consider the following as you read: 

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

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

Economics, Ch. 33: Money Creation

Read pages 731-743 of Economics. 

Consider the following as you read: 

· Why is the U.S. banking system called a "fractional reserve" system?

· How can a bank create money?

Economics, Ch. 34: Interest Rates and Monetary Policy

Read pages 752-769 of Economics. 

Consider the following as you read: 

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

· What are the goals and tools of monetary policy?

Economics, Ch. 38: International Trade

Read pages 839-854 and 857-865 of Economics. 

Consider the following as you read:

· What are the key facts about international trade?

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