This text strives to make macroeconomics come alive for today's students planning to major in business or economics. The content reflects the news-stream from financial markets, Fed monetary policy, and budget debates. Key concepts are stressed and reinforced as the story of unfolds: the real vs. nominal distinction, the role of the interest rate in linking the real economy to the financial sector, how that linkage allows monetary policy to operate, and the role of the trade deficit. The fourth edition expands the chapter on financial intermediaries and markets - one that is popular with students, introduces indexed bonds into the discussion of interest rates, adds charts putting the recent bull market in historical context, and the chapter on the federal budget is completely revamped to reflect the emergence of a surplus. Additional exercises help reinforce concepts. Teaching resources may be found at http://www.econ.washington.edu/user/cnelson/INSTRUCTOR.html

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