Assignment

1. What are the uses of money? Describe how rapid inflation can undermine money's ability to perform its three basic functions.

2. Will current Fed's policy hinder money's ability to perform its three basic functions? Explain your rational.

3. Explain what distinguishes money from other assets in the economy.

4. Explain the costs of inflation. Which of these costs do you think are most important for the U.S. economy?

5. Who benefits from a tariff or quota? Who loses?

6. What are the positives and negatives of protectionist trade policies? Which policy is best right now?

7. Define net exports and net capital outflow.

8. Why are budget deficits and trade deficits sometimes called the twin deficits?