Chapter 19 primary question: Explain how exchange rates and interest rates are linked (including the mechanisms for that linkage.)
Chapter 20 primary question: Why and when was the velocity of money stable and why and when was it unstable?
Chapter 21 primary question: Fully develop the AD/AS model with inflation and output as its axis labels in both the short run and long run. Be sure to include all of the elements that go into its development.
Chapter 22 primary question: Describe the Great Moderation, when and how it came about and why it ended as badly as it did.
Chapter 23 primary question: Summarize all of the channels by which the monetary policy transmission mechanism can work.
example of a really good answer:
Distinguish between idiosyncratic and systemic risk.
K. (2003). Two Homes. Candlewick.
Two Homes is the story of a young boy called Alex whose parents are now together living in separate homes, which means Alex has two homes. It never discusses why Alex’s parents are not together, whether they divorced or never married. At Mommy’s house Alex has a soft chair but at Daddy’s house Alex has a rocking chair. In each house Alex has a special bedroom with lots of toys and friends to play with. It gives a tour of both homes, two kitchens, two bedrooms, two favorite chairs. Alex lives in the two homes, but the two homes are very similar, and he is happy in both. No matter which home Alex is in: Mommy or Daddy – Alex knows that he is loved more than anything. It is written from the perspective of Alex who travels between the two homes and provides a realistic yet positive view of having two single parents. The book is a great window which can be used to reassure children going through divorce to focus not on what is lost but what is gained. It does not focus on the reason for the separation or the two houses but just discusses how children are loved in both homes and by both parents.
Two is Enough Picture Book/Realistic Fiction
Matthies, J., & Mourning, T. (2015). Two is Enough. Running Press.
Two is Enough is a simple rhyming text with illustrations that follows different types of families made up of just two. Without using the word family or relationship specifics like mom, dad, parent or grandparent this book shows adult/child relationships using a variety of cultures, ages and genders. Using a range of small family dynamics like a father and son, father and daughter, grandmother and grandson and mother and daughter, it shows them doing everyday things together and things like playing in the snow, rainy-day rides, double scoop treats and playing in leaves. Two is Enough shows thriving one-parent families and lots of attention for the child. Two is perfect in the winter for riding bikes on a rainy day, sho