Economics questions

1. Why do people hold money?
2. What are the tools of monetary policy and how can the Federal Reserve apply these in a recessionary environment?

Chapter 10

1. Describe how is the CPI derived and what purpose does it serve?
2. What is the difference between the CPI and the GDP Deflator?
3. How does inflation affect society and who are the losers and gainers from inflation?
4. Define demand pull inflation and cost push inflation.