discussion questions - economics

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Crnpurf2294

Economics

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please respond to the following questions with at least a 100 word response, no formatting needed

  1. How do economists integrate the international sector (exports and imports) into the aggregate expenditures model?
  2. How do economists integrate the public sector (government expenditures and taxes) into the aggregate expenditures model?
  3. Why is the U.S. banking system called a "fractional reserve" system?
  4. How is the equilibrium interest rate determined in the market for money?
  5. How do differences between world prices and domestic prices prompt exports and imports?

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Explanation & Answer

Attached.

Outline economics
1. How do economists integrate the international sector (exports and imports) into the
aggregate expenditures model?
2. How do economists integrate the public sector (government expenditures and taxes) into
the aggregate expenditures model?
3. Why is the U.S. banking system called a "fractional reserve" system?
4. How is the equilibrium interest rate determined in the market for money?
5. How do differences between world prices and domestic prices prompt exports and
imports?


Running Head: ECONOMICS

1

Economics
Institution Affiliation
Date:

ECONOMICS
1.

2

Exports and imports are components of the aggregate expenditures model. They represent

the international segment of the economy. The exports impact the aggregate expenditure directly
by expanding the output. On the other hand, the imports contract the aggregate expenditure. The
exports expan...


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