Third, illustrate how the Expansion multiplier for deposits increases the money supply. Again, apply mathematical illustrations here as well after creating an initial money deposit for a fictitious Barterland depositor. Better yet, use this one:

"A Barterland depositor -assuming money and not commodities are used as currency- makes a deposit of $250,000. If the Barterland Bank has a reserve requirement of 5%, how much new money is created from the initial deposit?" (Hint: Think "deposit multiplier" but make sure to you plug in the "correct" variables)

Fourth, the protectionist hungry pineapple growers recognize that imported pineapples are being purchased by Barterland consumers -again, after a medium of exchange has been introduced. They want this to stop and have asked their government to impose a tariff on all imported pineapples. Your team has been asked to show how the producers would benefit and Barterland's consumers suffer. Explain and illustrate. (Hint: look at the tariff discussion in the international econ lecture model for assistance here)