Problem
1. In the 1990s Germany attempted to control inflation through a restrictive monetary policy and high interest rates. Explain how this might have influenced income and prices in the United States.
2. Explain how appreciation of a country's currency could affect its aggregate supply curves when imported intermediate inputs are sizable.
3. If discretionary economic policy is to have more than a short-run effect on income and employment, what needs to take place?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.