Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assume that fiat money and capital are perfect substitutes as assets and that individuals wish to hold the one with a higher rate of return, but that it takes time to adjust capital holdings. In equilibrium individuals hold both assets. The real rate of return on money is n z , where n = 1 and z = Mt Mt−1 . The gross real rate of return on capital is f 0 (kt) = 100 kt . (a) What is the equilibrium level of capital when the money stock is constant? What is it when the money stock is doubled in every period? (b) What is the equilibrium nominal rate of return when the money stock is constant? What is it when the money stock is doubled in every period? (c) What are the immediate and long-run effects on capital holdings of an unanticipated increase in the growth rate of the money stock? (d) What does this model predict for the relationship between inflation and output? Does it matter whether inflation is anticipated or not? (e) How does your answer in part d differ from what the Lucas model predicts?
If a deposit outflow of $50 million occurs, which balance sheet would a bank rather have primarily or the following balance sheet.
Which of the following actions by a nation's central bank would be most effective in reducing inflation?
What will happen to real GDP and to the amount of labor employed, aggregate consumption, and aggregate savings? Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.
Name and discuss the major types of financial intermediaries in the U.S. and illustrate the differences in the way assets and liabilities are recorded on their balance sheets. Describe the major differences between depository and non depository inter..
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 120 - 0.25P, and the marginal cost of production is $160. Determine the optimal number of units to put i..
Show that the gross increase in profits from raising price by dp equals pqt(1 - tε). Recall that t = (dp/ p). Show that the gross decrease in profits from raising price by dp equals mptqε.
What do you think of Coca-Cola's environmental initiatives? Are they just window dressing , or does the company seem to be sincere in its efforts?
What is cross elasticity of demand? How can it be used to tell if goods are substitutes for each other or complementary to each other? What is the rationing function of prices? Should health care be subject to this type of rationing? Be sure to comme..
Economic relationships between Spain and Portugal, and Europe (England, France, Holland): Structures of dependence. Differences between Spain and England and how these difference extended to and/or influenced the development of the Spanish colonies.
An office supply company has purchased a light-duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company’s revenue by $10,000 annually, while the associated operating expenses are expected to be $3,00..
Illustrate what has happened in the market for your good or service in the curve you labeled D1. What happened to the equilibrium price.
Assuming 100 identical firms in the industry (further assume that factor prices remain the same) what quantities will the industry and each firm supply when the product’s price is $9? What if prices are below $5?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd