1. Perry Mehrlingsays that a payment system is a credit system. Summarize his explanation with a short paragraph.

2. Perry Mehrlingmentions elasticity and discipline and connects them to the expansion and contraction of credit. Write a short paragraph to connect these concepts. (This answer will reference several of the short videos).

3. Explain the difference between liquidity and insolvency. What options does an economic unit do if they find themselves facing a liquidity constraint? How does time factor into the liquidity constraint for the survival of an economic unit?

4. Write a short paragraph comparing the textbook description of the money system to Perry Marling'slecture videos.

Videos:

https://www.youtube.com/watch?v=2dIsnwMxXTM

https://www.youtube.com/watch?v=f6qXHMUMfzQ

https://www.youtube.com/watch?v=Kce8ST2g3aY

https://www.youtube.com/watch?v=W0IGZW0QOr4

https://www.youtube.com/watch?v=8fJAUlpixpY

https://www.youtube.com/watch?v=5Fa-9RTK8zc

https://www.youtube.com/watch?v=80_z5IMo9mk

https://www.youtube.com/watch?v=zbRwRasqTuA

https://www.youtube.com/watch?v=1_QLYX-99gQ

https://www.youtube.com/watch?v=sdHLuC8fNfc

https://www.youtube.com/watch?v=_XwuGgyYrGs