Q1. Free international trade enables all nations to gain from specialization also trade. To Illustrate what degree can the United States save jobs, compensate for low foreign wages, compensation for costly environmental policies also protect developing nations from being exploited by restricting international trade? Use examples to illustrate a position.

Q2. "Consider a world in which there is no currency also depository institutions matter only transactions deposits also desire to hold no excess reserves. The required reserve ratio is 20 percent. The central bank sells $1 billion in government securities. Illustrate what ultimately happens to the money delivery?"