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What are the two policy options used to influence the economy. What are the possible negative side effects of your recommendations.
Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate? b) Explain what is meant by a built-in stabilize
Do these recommendations affect any of your decisions regarding the price of your product or the quantity of the product you are choosing to produce. What other business decisions are impacted as we
how does this type of monetary and fiscal policies influence other interest rates. Do you think mortgage rates will be affected? Credit Cards.
How do you assess the current condition of the economy. What are the strength and weaknesses. What policies do you regard as appropriate in directing economic performance going forward over the next
These rules would require the Fed to make adjustments to interest rates based on information that is fully available to the public, such as the current unemployment rate and the current inflation r
Do you see any possible drawbacks to such a policy. Suppose the Federal Reserve purchased gold or foreign currency. How would this purchase affect the domestic money supply.
Employee innovation and productivity achievements are rewarded with certificates or token prizes. Are these rewards appropriate. How do they compare with the rationale for pay for performance.
Suppose the Fed purchases $5 billion worth of government bonds from Bill Gates. Does it make any difference if the Fed buys bonds from a bank or an individual.
Explain the three major instruments of monetary policy and the effect on short run vs. long run output in an economy.
What is the role of the Federal Reserve System and what are the key instruments of monetary policy it uses. Describe briefly how each of them works.
What economic arguments/assumptions could be used to justify Bush's policy of making his temporary tax cuts permanent.
Explain in each case how the change you advocate would affect commercial bank reserves, the money supply, interest rates, and aggregate demand.
Why is money a better medium of exchange than other commodities. What are the differences among the alternative measures of money.
Do voters have a say in the implementation of monetary policy. How might a high school student's experience with inflation differ from an employed urban adult.
What is the most recent monetary policy action taken by the FOMC. Based on your answer to b what monetary policy action do you recommend the FOMC take at its next meeting.
How do open market operations work through the fractional reserve banking system to impact the money supply and interest rates.
What if the interest rate is 10%. What are some possible explanations for why a farmer might not invest in erosion control and rebuilding.
How would you assess the overall financial health of McDonald's. What are the are good and bad signs if any for the future.
This year the owner, who had invested $1 million in the club, decided to close the club. What can you say about economic profit ( and the rate of return) in the nightclub business.
Describe the process of monetary policy including its relation to interest rates, the money supply, and fiscal policy.
Explain how is the oil industry's success affected by the economy. What are some influences in the economy that can negatively affect the oil industry.
How have the monetary and fiscal policies affected the growth of the tobacco industry. How have the monetary and fiscal policies affected the prices of the product the tobacco industry produces. &nbs
Using the AD/AS model what do you predict will happen to the level of Real GDP and the Price level in the U.S. in the Short-Run and Long-Run
How the economy affects the success of your chosen industry. Economic influences that can affect the industry in a negative way.