Suppose that on January 1 the exchange rate between the U.S. dollar a Suppose that on January 1 the exchange rate betwee

4. What is meant by the term “social insurance”. Give an example of a social insurance program. 5. What is the goal of expansionary monetary policy and how does it work in the short run? 6. Most economists do not support a law that requires the federal budget to be balanced every year. Explain why. 7. Explain the difference between fiscal and monetary policy.

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