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##### Reference no: EM131095557

1. About "Macroprudential Policy, Countercyclical Bank Capital Buffers and Credit Supply:Evidence from the Spanish Dynamic Provisioning Experiments" How do you think this policy on provisions would differ from a policy on capital requirements?

2. The dynamic provision policy was given by a formula imposed by the central bank. It could have been a discretionary approach (determined on a case by case basis by regulators). How would banks’ behavior differ in the case of a discretionary approach? What if the discretion belonged to the banks themselves?

#### Do price reductions always result in higher profits

Do price reductions always result in higher profits? For example, if the demand for a firm's product is price inelastic, will the firm increase its profits by cutting its pric

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Two investment opportunities are as follows: For A: First cost = \$150, Uniform annual benefit = 25, End-of-useful-life salvage value = 20, Useful life = 15 years. At the end o

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Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affec

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Jack is looking to replace the recently sunk Black Pearl. In an uncharacteristically well-behaved moment, he considers buying a new ship with his pirate's hoard of gold. But w

#### The marginal cost is a constant

If the marginal cost is a constant of 6, would that mean it is an economy of scale or diseconomy? My first thought was that it would be a diseconomy since I thought MC needed

#### Suppose the economy has a natural rate of unemployment

Suppose the economy has a natural rate of unemployment of 6%. Suppose short-run output over the next 4 years is +1%, 0%, -1%, and -2%. According to Okun’s law, what unemployme

#### Stimulus package by using the income multiplier

Please analyze the stimulus package by using the income multiplier. (A tax rebate is a decrease in autonomous tax, the To in the total tax formula mentioned in class).

#### Using standard demand and supply analysis

Assume that books were sold in a perfectly competitive market. In response to consumer complaints about the high price of books, the government imposes a binding (effective) p