Problem
1. What is the effect of a balance-of-payments surplus on a country's domestic money supply? How does this effect occur? How can it be offset or canceled by the central bank of the payments-surplus country?
2. If your employer, who studied economics at a British university where monetarism is disliked, asked you to explain why a particular country experienced a serious deterioration of its balance of payments, what aspects of that country's economy would you study in seeking to respond to that request? If your employer had studied economics at the University of Chicago, how would your approach change?
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.