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i have 8
Questions and i want you to answer them because i could not find the answers.
1) Distinguish between physical capital and financial capital and give two examples of each.
2) How does a government budget surplus or deficit influence the loanable funds market?
3) How do banks create money?
4) How is equilibrium in the market of money being determined?
5) Why do loanable funds flow among countries?
6) What is the quantity theory of money?
7) If potential GDP increases, what happens to aggregate supply? Does the LAS curve shift or is there a movement along the LAS curve? Does the SAS curve shift or is there a movement along the SAS curve?
8) What makes something money? What functions does money perform? Why do you think packs of chewing gum don’t serve as money?