Econ question, Microeconomics

Assignment Help:

ref article :https://www.economist.com/news/finance-and-economics/21587795-if-congress-fails-lift-limit-americas-debts-consequences-are

 

a.assume that the debt ceiling crisis did not result in an agreement that the US was “ no longer able to borrow” Draw a graph of the financial market and show the impact of just this situation,what impact does that have on interest rates and private investment?

 

b.whatwill happen to government spending in the economy and compare that with the size of what you have explained will happen to private investment? what would happen to overall demand in the economy in the short run?

 

c.Further on in the article they explain that "it american defaults, lenders may refuse treasuries as collateral becoz they cannot be sure than everyone else would accept them.." draw a graph of US financial market and explain what happen to interest rates and private investment if foreign banks decided not to use treasuries a s collateral.

 

d. draw a generic graph of a foreign financial market and demonstrate what happen when foreign financial institutions might start hoarding funds, causing markets to seize up


Related Discussions:- Econ question

Demand and supply, the demand and supply functions for goods are given by d...

the demand and supply functions for goods are given by demand:Pd=50-3Qds and supply:Ps=14=1.5Qs. where p is the price of a pair of jeans, Q is the number of pairs of jeans a) calc

ADVANCE ECONOMICS, THERE IS PRESSURE ON THE CENTRAL BANK TO INCREASE MONEY...

THERE IS PRESSURE ON THE CENTRAL BANK TO INCREASE MONEY SUPPLY WHAT WOULD BE THE EFFECT ON THE MACROECONOMIC VARIABLE

Determinants of investments, Determinants of investments: Expected Ra...

Determinants of investments: Expected Rate of Return: Investment spending is guided by the profit motive; thebusiness sector buys capital goods only when it expects such

102, why does the quantity of salt tend to be unresponsive to changes in it...

why does the quantity of salt tend to be unresponsive to changes in its price

Elasticity, How much would the price of Good Z (Pz) have to change in order...

How much would the price of Good Z (Pz) have to change in order to increase the consumption of Good C by twenty five percent (25%)?

Monopsony, advantages and disadvantages

advantages and disadvantages

Low levels of productivity, Low levels of productivity: In addition t...

Low levels of productivity: In addition to low standards of living, developing countries are characterized by relatively low levels of labour productivity. Throughout the dev

Axioms - revealed preference theory, Axioms: Revealed preference theor...

Axioms: Revealed preference theory is based on the axioms listed below.  •  Consumer will spend all her income on goods. The consumer equilibrium always remains on the budg

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd