Charles and Betsy Drugg's thirteen-year-old son, Andy, died on a June 2001, river-rafting trip in Arizona with Moki Mac River Expeditions, a Utah-based river-rafting outfitter. Moki Mac did not directly solicit the Druggs to participate in the trip. Instead, the Druggs learned about Moki Mac's excursions from a fellow Texas resident, Annie Seals, who had contacted the company regarding a rafting trip in the Grand Canyon. There was no space available for her at that time, but Seals's contact information was placed on Moki Mac's computerized mailing list so that she would automatically receive a brochure for the 2001 season when it became available. Moki Mac subsequently sent two brochures to Seals in Texas detailing pricing and schedules for upcoming excursions. Seals informed Moki Mac of the interest of several others in Texas with whom she shared the literature, including Andy and members of his family.

1. What is meant by quantitative easing?s 61

2. What has happened to the EU interest rate since 2007?

3. What effect is the pattern in (1) likely to have on firms

like Anton Autobrakes?

4. What relationship exists between interest rates and

consumer spending? Use the Francesca Panico

example to support your answer.

5 Describe the mechanism by which high interest rates in

Russia affect consumers and firms.

6. Discuss the effect Russia's monetary policy might have

on unemployment in the economy.

7. Assess whether Russia's monetary policy is working?

Make a clear judgement in your evaluation.

8.Why has Japan used quantitative easing?

9. Why might quantitative easing be inflationary?

10. What is meant by monetary policy?