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How should Jetson decide on the optimal level of inventory? How would a change in interest rates affect the optimal level of inventory?
In what ways does it help a developing country to transfer and use a new technology in its country? What are the costs?
Which of these two firms would you expect to have more significant adjustment costs? Which firm would be more likely to hold excess labor?
Which countries around the world are growing most rapidly according to the most recent data? Which countries around the world are growing more slowly?
In what ways would you expect each of these proposals to be favorable to economic growth?
Education is an area in which it has been hard to create productivity gains that reduce costs. Why can you suggest some productivityenhancing measures?
Would you buy or rent? How would you go about deciding? Would your expectations play a role? Be specific.
On what do you base your expectations? Is your thinking consistent with the notion of rational expectations? Explain.
What is nominal income? real income? What happens to nominal income if the money supply is doubled? What happens to real income?
Write a brief essay on the U.S. political opposition to CAFTA-DR in 2004 and 2005. What industries in the United States opposed the trade agreement?
What product or products does your state specialize in? Explain why your state specializes the way that it does? Explain your answer.
What will be the new level of real output if the actual price level does not change? What is the value of the price surprise in parts a, b, and c?
What specific evidence would you look for to see whether the Clinton plan was effective or whether the critics were right to be skeptical?
Draw the production possibility frontiers for each country in the absence of trade. What rate (number of guns per unit of butter) would they agree to exchange?
By using money supply and money demand curves, show the effects of the increase in Y and P on interest rates, assuming no change in the money supply.
What would the Fed do if it wanted to raise interest rates? What if it wanted to lower interest rates? Illustrate with graphs.
How many times a week do you use an ATM? If ATMs were not available, would you carry more cash? Would you keep more money in your checking account?
Explain briefly but clearly why the value of bonds changes when interest rates change. How big is the value of Credit Market Instruments held by households?
Why would bond prices rise if people feared a recession was coming? Why would fear of inflation lead to losses for bondholders?
What will happen if there is an excess demand for money in the economy? What will happen to interest rates in each of these cases?
All else equal, what effect will an expansionary fiscal policy have on the money market, and how will this change impact the effectiveness of the fiscal policy?
Describe briefly how Mr. Peabody should decide how much money to hold. What will happen if the interest rate increases to 20 percent?
What effect did the bank hope the action would have on the economy? Be specific. What was the hoped-for result on C, I, and Y?
Describe what happened to demand for commercial and industrial loans as well as the level of optimism for small businesses.
What specific actions would you expect to see the Fed take if the following were to occur?