1.) Evaluate this statement: “Because of Covid-19, Carnival Cruise Lines has taken severe financial losses and is having difficulty obtaining credit. If we allow Carnival Cruise Lines to go out of business it will not just impact the cruise industry; thousands of other businesses will suffer as a result of their collapse. Carnival is just too big for us to allow them to fail, therefore the government must loan Carnival money to keep them from going out of business.”
2.) Evaluate the following statement: “If we increase the money supply we can lower
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unemployment.” 3.) Evaluate this statement: “Inflation decreases the value of money, therefore inflation is
bad and should be avoided by the government if possible.”
4.) Does fiat money have any advantages when compared to commodity money? Does it
have any disadvantages?
5.) What are some of the fundamental differences in the way a Classical economist would view business cycles in comparison to a Keynesian? How would these differences affect policy suggestions related to business cycles
