QUIZ KEYS FOR CHAPTER 27 AND “SICK AROUND THE WORLD.”

CHAPTER 27

1. What is the financial sector?

2. Explain the role of price and interest rates in the real and financial sectors.

3. Using the concepts of interest rates and inflation, explain how the housing bubble started in the earlier part of this century.

4. How does inflation affect the functions of money?

5. How do banks create money?

6. Be able to use the simple money multiplier.

7. Be able to use the real world money multiplier.

“SICK AROUND THE WORLD.”

1. What percentage of GDP  do each of the countries examined pay for health care?

2. Explain the key characteristics of each of the four models and which country goes with which model.

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