Learning Objectives: Unit 4

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. Each number in the following list refers to the question number on Exam 4 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below. A much better understanding can often be attained by working through MyEconLab assignments connected to any of these objectives.

21. After reading Chapter 16, you should be able to:
    
    Explain the three categories of money demand, how money demand responds to changes in interest rates and GDP, and how these changes are depicted on the money demand graph.

22. Explain how the monetary policy pursued by the Fed influences interest rates and hence bond prices.

23. Explain the direct and indirect effects of monetary policy on short run AD. Include both expansionary and contractionary changes and the use of various policy tools.

24. Explain how will monetary policy affect net exports and the foreign exchange rate.

25. Define the equation of exchange. Be able to define all four variables.

26. List the assumptions made to turn the equation of exchange into the quantity theory of money. What does this theory predict?

27. Explain both expansionary and contractionary monetary policy using the three graph transmission mechanism.

28. Explain:
    a. which three interest rates are particularly relevant to carrying out monetary policy;
    b. the role of the FOMC and the Trading Desk in carrying out monetary policy; and
    c. the role of the Taylor Rule in carrying out monetary policy.

29. Explain what "credit policy" is at today's Fed, how it operates, and arguments for and against it.

30. Explain the Keynesian approach to an increase and decrease in the money supply and its effects on the interest rate and the GDP.

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. Each number in the following list does not refer to the question number on Exam 4 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below. A much better understanding can often be attained by working through MyEconLab assignments connected to any of these objectives. There will be 10 questions based on this chapter on the Exam

After reading Chapter 18, you should be able to:

31. Explain why population growth can have uncertain effects on economic growth.

32. Explain why the existence of dead capital retards economic growth.

33. Describe the growth shift from advanced nations to developing and emerging countries.

34. Discuss the sources of international investment funds for developing nations.

35. Identify the key functions of the World Bank and the International Monetary Fund.

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. Each number in the following list does not refer to the question number on Exam 4 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below. A much better understanding can often be attained by working through MyEconLab assignments connected to any of these objectives. There will be 10 questions based on this chapter on the Exam

After reading Chapter 31, you should be able to:

1. Explain why nations can gain from specializing in production and engaging in international trade.

2. State the common arguments against free trade.

3. Describe ways in which nations restrict foreign trade.

4. Identify key international agreements and organizations that adjudicate trade disputes among nations.