Reference no: EM131145845
The Clinton-Greenspan policy mix
As described in this chapter, during the Clinton administration the policy mix changed toward more contractionary fiscal policy and more expansionary monetary policy. This question explores the implications of this change in the policy mix, both in theory and fact.
a. Suppose G falls, T rises, and M increases and that this combination of policies has no effect on output. Show the effects of these policies in an IS-LM diagram. What happens to the interest rate? What happens to investment?
b. Go to the Web site of the Economic Report of the President (www.gpoaccess.gov/eop/). Look at Table B-79 in the statistical appendix. What happened to federal receipts (tax revenues), federal outlays, and the budget deficit as a percentage of GDP over the period 1992 to 2000? (Note that federal outlays include transfer payments, which would be excluded from the variable G, as we define it in our IS-LM model. Ignore the difference.)
c. The Federal Reserve Board of Governors posts the recent history of the federal funds rate at https://www.federalreserve. gov/releases/h15/data.htm. You will have to choose to look at the rate on a daily, weekly, monthly, or annual interval. Look at the years between 1992 and 2000. When did monetary policy become more expansionary?
d. Go to Table B-2 of the Economic Report of the President and collect data on real GDP and real gross domestic investment for the period 1992 to 2000. Calculate investment as a percentage of GDP for each year. What happened to investment over the period?
e. Finally, go to Table B-31 and retrieve data on real GDP per capita (in chained 2005 dollars) for the period. Calculate the growth rate for each year. What was the average annual growth rate over the period 1992 to 2000? In Chapter 10 you will learn that the average annual growth rate of U.S. real GDP per capita was 2.6% between 1950 and 2004. How did growth between 1992 and 2000 compare to the Post World War II average?
|
Calculate current ratio inventory turnover receivables
: Compute the following: (It is not necessary to use averages for any balance sheet figures involved.) (a) Current ratio (b) Inventory turnover (c) Receivables turnover (d) Book value per share (e) Earnings per share (f) Debt to total assets
|
|
Compute the future value and the present value
: Compute the future value in year 9 of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 using a 10 percent interest rate.
|
|
Calculate cp capability ratio and cpk capability index
: Calculate Cp (Capability ratio) and Cpk (Capability index) from the following data: Sigma (standard deviation) = 20Upper spec limit = 250 Lower spec limit = 100
|
|
Describe five cardinal virtues of professional accountants
: Describe the five cardinal virtues of professional accountants that the article's authors discuss. Compare and contrast the AICPA's Code of Professional Conduct and the IFAC Code of Ethics for Professional Accountants.
|
|
Calculate investment as a percentage of gdp for each year
: Go to Table B-2 of the Economic Report of the President and collect data on real GDP and real gross domestic investment for the period 1992 to 2000. Calculate investment as a percentage of GDP for each year. What happened to investment over the pe..
|
|
Which aicpa code applies to all members
: The AICPA code of professional conduct begins with the preface which applies to all members, and the code is presented in 3 parts: This part is applied to the members who practice the profession in the public area
|
|
Was this an observational study or an experiment
: Almond vs. dark chocolate A statistics student wondered whether the color distribution for Almond M&M's candies is the same as for Dark Chocolate Peanut M&M's. Was this an observational study or an experiment? Explain.
|
|
What is the natural rate of unemployment
: Suppose that the markup of prices over costs increases to 10%. What happens to the natural rate of unemployment? Explain the logic behind your answer.
|
|
How many of the students in the sample study between
: Find the standard score (z-score) for students who study the following hours in a particular week. Round Z to the nearest hundredth and interpret the meaning of each answer as it pertains to this problem. Assuming the distribution of the number of ho..
|