1. Describe the functions of money.

  2. What is fiat money? What is commodity money?

  3. Who controls the money supply and how?

  4. Write the quantity equation and explain it.

  5. What does the assumption of constant velocity imply?

  6. Who pays the inflation tax?

  7. If inflation rises from 6 to 8 percent, what happens to real and nominal interest rates according to the Fisher effect?

  8. List all the costs of inflation you can think of, and rank them according to how important you think they are.

  9. Explain the roles of monetary and fiscal policy in causing and ending hyperinflations.

  10. Define the terms real variable and nominal variable, and give an example of each.