Macro economic important questions

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[A] As a portfolio manager whose company has investments in a country with a high level of debt what would you do to raise your companies profit or protect their interest if;

Experts have recommended to the country that it exchange rate should be pegged at the equilibrium level. And, the foreign exchange reserves of the country are decreasing at a dramatic weight.

Be sure to explain why the countryâ??s exchange rate is either over-valued or under-valued.

Use graphs and other information to support you answer, where applicable.

[B] Suppose a substantial amount of liquidity has been pumped into the economy and that the federal fund rate has been cut. Also assume, Congress has passed a new stimulus bill that raises marginal tax rates but also offers tax credits for small business that begin employing people.

State and explain what you think will likely happen, on a macro level, as a result of these actions. State and explain how you think these macro-level changes will effect big businesses. Use graphs and other information to support you answer, where applicable.

Use graphs and other information to support you answer, where applicable.

[C] After spending years on trying to get a handle on healthcare, assume Congress was able to accomplish the following tasks:
1. Completion and passage of a bill that expands insurance coverage to millions people (low/mid income) through the distribution of tax credits and extension of Medicaid.
2. Completion and ratification of a Contractual agreement with Pharmaceutical companies that results in a significant cost savings, nearly 100 billion, over fifteen years.

State and deacribe what you think the impact of the new regulatory reform and concessions changes will have on 1) the economy on a macro-level and 2) specifically pharmaceutical companies that spend over 30% of their gross income on research and development.

Use graphs and other data to support you answer, where applicable.

Reference no: EM1373267

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