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 Barterlands consumers suffer. Explain and illustrate. (Hint: look at the tariff discussion in the international econ lecture model for assistance here) so how do you do this test? The simple answer is you apply everything youve learned about Money and Banking, the Fed; other tools the Fed may apply from time-to-time: components of the money supply, and maximum amount of new money created from excess reserves when a bank in Barterland lends its excess reserves, in addition to our study of international economics. Further, you should apply graphical illustrations when necessary in support of your analysis. Finally, Explain how production possibilities in terms of trade would benefit Barterland. Given the country has pineapples and needs to import bourbon, how would you both explain and illustrate the concepts of absolute and comparative advantage to the finance minister. To reiterate, you and your team are pretending that youre developing an economic plan for this country which includes the aforementioned. Remember that you discuss the rationale behind your recommendations.