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1. What is Money? Explain the characteristics and types of money. (20 Points) 2. What is Monetary Policy? Explain Bank of Canada objective and inflation

1. What is Money? Explain the characteristics and types of money. (20 Points) 2. What is Monetary Policy? Explain Bank of Canada objective and inflation target. (20 Points) 3. What is an externality? Explain positive and negative externalities. (20 Points). 4. What is fiscal policy and explain the impact of surpluses and deficits. What is the role of deficit spending in fiscal policies. (40 points)

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