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1- Should the Fed be more concerned about keeping inflation low or unemployment low? Please justify your answer.
2- Please explain what the Fed's open-market operations are.
3- Has the Fed changed the discount rate lately? If so, has it had an impact on the economy?
In a Cournot equilibrium, where both firms produce positive amounts of output, which firm do you expect to produce more. Explain your answer.
Suppose the demand for tablets is given Q = 2000 - 10 P. Where Q is the quantity demanded and P is the price of tablets. Plot the demand curve. (Price in the vertical and quantity in the horizontal axis) What is the inverse demand?What is the slope o..
Describe the current European union its expanded membership and its problem and prospects for year 2015 what keeps so many disparate countries together"? is there a European identity? will they continue to expand? What issues will dominate the coming..
Which of the following is correct about comparative advantage?
You are shown four envelopes. Envelope A contains $1,500; envelopes B, C and D contain uncertain amounts of money but with the following probabilities: Envelope B -- $5,000 with a 10 percent probability, $1,500 with an 89 percent probability, and $50..
Assuming the velocity of money is constant, nominal money supply is growing at 12 percent a year and real incomes are growing at 4 percent a year: What is the inflation rate in this economy? What would happen to the inflation rate if real incomes wer..
As far as I can tell, research on the economics of poverty is very empirically driven, and this is probably appropriate. What kind of economic theory has been developed though? I'd also be interested in theory of some influence too. As an example, I ..
Calculating savings using the goods market equilibrium. Assume a closed economy (NX = 0). Suppose net taxes are $100 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. Calculate public savings, pr..
A U.S. wine merchant travelling in France has found a French wine of the same quality as a U.S. wine they regularly sell. She assumes that the real exchange rate should be 1 case of U.S. wine equals one case of French wine. The French wine merchant w..
The national bureau of economic research in December 2010 reported a study by Elizabeth Wilde, Lily Batchelder, and David Ellwood that a highly skilled woman loses anywhere from $230,000 to $349,000 in lifetime earnings by having children. What are t..
The concept of generational imbalance is designed to:
If a company's revenues and earnings are highly predictable, it's stock price will also be highly predictable. One advantage of the dividend valuation model is that it does not need a required rate of return. Marti is 31 years old and is saving for r..
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