Principles of Macroeconomics 2e covers the scope and sequence of most introductory economics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters.Changes made in Principles of Macroeconomics 2e are described in the preface and the transition guide to help instructors transition to the second edition.

By the end of this section, you will be able to:Differentiate among a floating exchange rate, a soft peg, a hard peg, and a merged currencyIdentify the tradeoffs that come with a floating exchange rate, a soft peg, a hard peg, and a merged currency

By the end of this section, you will be able to:Contrast expansionary monetary policy and contractionary monetary policyExplain how monetary policy impacts interest rates and aggregate demandEvaluate Federal Reserve decisions over the last forty yearsExplain the significance of quantitative easing (QE)

By the end of this section, you will be able to:Explain crowding out and its effect on physical capital investmentExplain the relationship between budget deficits and interest ratesIdentify why economic growth is tied to investments in physical capital, human capital, and technology