1. Briefly discuss how the foreign exchange market works. Include a discussion of the behind-the-scenes workings and provide an indication of the size of transactions that can be involved.

1. Identify and briefly discuss some practical difficulties of discretionary fiscal policy.

1. The gains from expanding trade are probably most important for the low-income economies in the world as opposed to the gains though trade benefitting the USA. Why might this be so? Offer at least three different reasons comparing and contrasting the USA economy with that of smaller nations.