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The policies of the federal government influence the outcomes of the various activities in that economy. When government policies change or unplanned events occur, the resulting economic events or activity will usually change. Listed below are several policies or events that affect the performance of the economy: The federal government employs a budget plan over several fiscal years that results in significant increases in the national debt, with no relief or plans to deal with the problem. The federal government enacts new tariffs and quotas on all imports. The general public loses confidence in their leadership, in terms of their ability to manage the economy, especially in the area of job creation. The federal government, in an effort to stimulate the economy, decreases taxes on all individuals except those earning over $250,000 per year. The level of investment decreases because of a lack of confidence in the economy. Interest rates are kept artificially low by the Federal Reserve for several years. Required: For each of the items above, describe what would be the likely outcomes in the economy. Use the appropriate tools of analysis, such as aggregate demand and aggregate supply where appropriate, to justify and explain your answer.
When the Fed adopts a contractionary monetary policy, the interest rate at which the Fed lends to other banks will be expected to and the money supply in the economy would be expected to. The main liability on the Federal Reserve's balance sheet is. ..
What is the Federal Reserve (Fed) all about? Which Federal Reserve District Bank is closest to you? Who is the current Chairman of the Fed?
Calculate the expected utility of each project according to this criterion. Is this individual risk adverse, risk neutral, or risk seeking? Why?
What are the factors determining the nominal interest rates. The real risk-free interest rate is determined in the loanable funds market by supply and demand for real loanable funds. What 4 changes (?) would shift the supply of real loanable funds..
What can government do to encourage the development of new technology? What are the two key characteristics of public goods? Name two public goods, and explain why they are public goods. How can the free rider problem be overcome?
Many individuals commit crime under conditions of temporary diminished rationality by discounting severely future consequences of criminal behavior (see chapter 12, Cooter and Ulen's textbook). Explain why policies that aim to increase the likelihood..
If you were responsible for setting the NAAQS for lead, what key determinants would you consider if the standard were established to meet the efficiency criterion. Be sure to itemize separately the benefits and costs associated with your decision.
If a firm’s output is produced according to Q = 4LK, the price of K is $10, and the price of L is $40, what is the cost-minimising combination of K and L capable of producing 64 units of output? The cost-minimising quantity of K is? The cost-minimisi..
Suppose a monopolist producing self-cleaning jackets can sell 20 jackets at $100, and 21 jackets at $98. The monopolist is unable to price discriminate, so in order to sell a total of 21 jackets, the price per jacket must be $98.
Based on your personal experience, please post one good that you think has elastic demand, and one good that has inelastic demand. Please include an explanation as to why you chose these goods.
Is it ethical for companies to benefit from their efforts to practice corporate social responsibility? Why or why not? How can anyone be sure that CSR efforts aren’t just public relations ploys?
With respect to tariffs and quotas, it can generally be said that:
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