financial sector important in macroeconomic debates
20. Why isthe financial sector important in macroeconomic debates? Why are macroeconomists concerned with the total amount of flows
coming out of and returning to the spending?
21. Would any assetthat is easily spendable be money? Why do people hold their assets in
the form of money?
22. The three functions of money are to serve as: (1) a medium of exchange, (2) a unit of account, and (3) a
store of wealth. Briefly explain each ofthese functions and give an example of each.
23. The major measures of money are M1, M2
and L. What are the major components of each ofthese measures? Why do economists focustheir attention on M2?
24. Explain how banks
create money. How is creating money by accepting a cash deposit different from creating money by making a loan?
25.How and why are
the decisions facing a monopolist different from the collective decisions of competing firms?
26. Why will a monopolistic firm maximize
total profit if it produces at the output level where marginal revenue equals marginal cost?
27. How are a monopolist’s
price, output, and profit determined graphically?
28. How would we show graphically the welfare loss resulting from converting a
perfectly competitive
industry into a monopoly?
(project)-
1- The effect of financial crisis 2007/2008 on
UAE. from recession to recover ? 2 a es
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