Reference no: EM131107944
ASSIGNMENT FOR CLASS # 4 EMBA 642
The following problems are to be handed in on November 25.
1. Indicate whether the following statements are true, false, or uncertain, and briefly explain your answer.
a. If the government cuts back on its stimulus program at the same time that the Bank of Canada tightens monetary policy this should generate a decrease in output, the aggregate price level and interest rates
b. The consequence of past investment in capital equipment, especially if it embodies technological change, is an increase in productivity. The impact on aggregate supply should put downward pressure on prices while increasing GDP.
c. The decrease in exogenous exports caused by the rising C$ should generate increased inflationary pressures.
d. The value of the Canadian dollar will tend to rise in periods of rising global demand and prices for commodities which Canada exports.
e. If the Bank of Canada increases its sale of bonds, this will cause the money supply to decrease
2. Using an aggregate demand and supply model, describe the short-term impact on aggregate economic activity (price level, output, and employment) of each of the following events. Briefly explain your reasoning. [You may, if you wish, use AS/AD diagrams].
(a) A weakening C$ causes a substantial fall off in cross-border shopping by Canadians in the US .
(b) the Bank of Canada engages in quantitative easing
(c) there is a significant decline in energy prices in the global economy
(d) the federal government increases the HST by two percentage points
(e) past investment in R&D pays off in a significant increase in Canadian manufacturing productivity
An increase in the earnings of high school graduates
: Ceteris paribus, an increase in the earnings of high school graduates would be expected to cause the number of people attending college to: A. increase. B. decrease. C. remain unchanged. D. change in an unpredictable manner.
|
What steps could you take to address this challenge
: Which role do you feel is the most important and why? Which one do you think will be the most challenging for you to implement and why? What steps could you take to address this challenge?
|
Increase worker mobility
: Which of the following will not increase worker mobility?
|
Prove that two conjugate sub-groups have same order
: Prove that two conjugate sub-groups have same order - what is difference b/w homomorphism and homeomorphism?
|
Canadian economy
: Using an aggregate demand and supply model, describe the short-term impact on aggregate economic activity (price level, output, and employment) of each of the following events. Briefly explain your reasoning. [You may, if you wish, use AS/AD diagrams..
|
Acceptable based on the information
: Show transcribed image text Congratulations! You have just won the Magazine Peddlers Sweepstakes! Spokesman Ferd McMoney has indicated that you have the choice of receiving $25,000 a year for the next 15 years with the first payment to be provided..
|
Using the replicating portfolio price this call
: Consider a European call option written on St. the call has a strike price K = 120 and expiration of 3 months. Using St and the risk-free borrowing and lending, Bi, construct a portfolio that replicates the option. Using the replicating portfolio pri..
|
Expected to cause the net benefit associated with mobility
: Assuming that wages in an alternative location are expected to always be higher than wages in the current location, an increase in the interest rate is expected to cause the net benefit associated with mobility to:
|
How many periods must a company present eps data
: For how many periods must a company present EPS data?
|