1.In a short paragraph, define money. Discuss two characteristics of the money used in the US today. Explain what would happen if commodity money like corn or cotton was used in the US today instead of out currency.

2.List three types of modern banks in the US. Discuss one way that modern banks offer electronic banking to their customers. Explain whether you think electronic banking is a good thing or a bad thing.

3.In a short paragraph, define the Federal Reserve. What is one service the Fed offers to banks or the Federal Government? What would happen if modern banks were not offered the services that the Fed gives them today?

Assignment 14

1.In a short paragraph, explain what aggregate demand and aggregate supply are. Explain how they are different than regular supply and demand. Then describe a consequence that may occur if aggregate supply and demand were not balanced or equal.

2.In a short paragraph, define price level. Explain what would happen in the economy if price levels rose in terms of a producer's reaction and/or a consumer's reaction. Then, explain what would happen if price levels fell.

3.In a short paragraph, define automatic stabilizers. Than give an example of an automatic stabilizer in the economy today. What would happen if the government put a stop to some of these automatic stabilizers in terms of the people they were helping?

4.In a short paragraph, define the term fiscal policy. Explain the difference between expansionary and contractionary fiscal policy. Explain how effective these policies are in helping the economy?