Assignment:
Money & Banking
1. In the U.S. data, how sensitive is the demand for money to changes in nominal interest rates?
2. What are the consequences of an increase in the money supply on output and the price level? Does your answer depend on where the economy starts(whether it is in long-run equilibrium or not?
The Aggregate-Demand / Aggregate-Supply Model:
1. Create a realistic scenario that illustrates the aggregate-demand / aggregate-supply model. In your scenario, you should identify changes in specific macroeconomic variables that cause each curve to shift.
Greece and ECB
This is an extra-credit project which involves the following:
• Collect information about recent political developments in Greece and their impact on the management of Greek sovereign debt.
• Research the response of the European Central Bank to these new developments.
• Post a brief summary and links to your sources.
• Post your comments and questions.
Your active participation in this project will be rewarded with 10 extra points, added to your Week 6 Discussion 1 score.