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This page intentionally left blank ADVANCEDMACROECONOMICSF ourth EditioniThe McGraw-Hill Series in EconomicsESSENTIALS OFECONOMICSBrue, McConnell, and FlynnEssentials of EconomicsSecond EditionMandelEconomics: The BasicsFirst EditionSchillerEssentials of EconomicsEighth EditionPRINCIPLES OF ECONOMICSC olanderEconomics,Microeconomics, andMacroeconomicsEighth EditionFrank and BernankePrinciples of Economics,Principles ofMicroeconomics, Principlesof MacroeconomicsFourth EditionFrank and BernankeBrief Editions: Principles ofEconomics, Principles ofMicroeconomics, Principlesof MacroeconomicsSecond EditionMcConnell, Brue, and FlynnEconomics,Microeconomics,Macroecono micsNineteenth EditionMcConnell, Brue, and FlynnBrief Editions:Microeconomics andMacroeconomicsFirst EditionMillerPrinciples ofMicroeconomicsFirst EditionSamuelson and NordhausEconomics,Microeconomics, andMacroeconomicsNineteenth EditionSchillerThe Economy Today, TheMicro Economy Today, andThe Macro Economy TodayTwelfth EditionSlavinEconomics,Microeconomics, andMacroeconomicsTenth EditionECONOMICS OF SOCIALISSUESG uellIssues in Economics TodayFifth EditionSharp, Register, and GrimesEconomics of Social IssuesNineteenth EditionECONOMETRICSG ujarati and PorterBasic EconometricsFifth EditionGujarati and PorterEssentials of EconometricsFourth EditionMANAGERIAL ECONOMICSBayeManagerial Economics andBusiness StrategyEighth EditionBrickley, Smith, andZimmermanManagerial Econom

2.6 The Effects of a Fall in the Discount Rate 66 2.7 The Effects of Government Purchases 71 Part B THE DIAMOND MODEL 77 2.8 Assumptions 77 2.9 Household Behavior 78 2.10 The Dynamics of the Economy 81 xi

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SOCIAL PROTECTION

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threatening the future of the household and its members. Development interventions may themselves create new vulnerability and risks through involuntary effects such as less affordable goods and services, temporary job loss, loss of common property, displacement, and loss of community support networks and social capital. 6.

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The Effects of Trade Policies 141 The Determinants of the Nominal Exchange Rates 143 CASE STUDY Inflation and the Nominal Exchange Rate 144 The Special Case of Purchasing-Power Parity 145 CASE STUDY The Big Mac Around the World 147 5-4 Conclusion: The United States as a Large Open Economy 149 Appendix: The Large Open Economy 153

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Family structure, spending and debt, housing and employment as factors infl uencing parents 25 Resilience of parents living in poverty 27 Cultural differences 29 6 Specifi c aspects of parenting and poverty: discipline and parental involvement in education 30 Discipline and child maltreatment 30 Involvement in education 32

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