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

Normal profit, Normal profit: Normal profit is when total revenue is e...

Normal profit: Normal profit is when total revenue is exactly equal to total cost when the latter includes both explicit costs. It is the type of profit when made by firms in

Comparison with our needs - structure of national income, Comparison with O...

Comparison with Our Needs: We can further test our performance by juxtaposing it with our requirements. Admittedly, it is very difficult to determine 'needed' rate of growth w

Population information, What population information is needed by local auth...

What population information is needed by local authorities to provide the right number of primary and secondary school places? How would such information affect the plans of the lo

Microeconomics and the market system, Suppose you are a painter, and the pr...

Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon t $3.50 a gallon. Your usage of paint drops from 35 gallons to 20 gallons a month. 1. Co

National income accounting, National income accounting: Final Goods: ...

National income accounting: Final Goods: Final goods are goods and services which are being purchased for final use and not for resale or further processing or manufacturing

Revenue and profit maximization, Revenue and Profit Maximization: When...

Revenue and Profit Maximization: Whenever a good is produced, the individual firm which has produced incurs costs which are are referred to as private costs and the society in

Iso curve, how do i make one on excel

how do i make one on excel

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