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How is this independence attained? How important is this independence to policymaking at the Federal Reserve?
Why Does the existence of this insurance eliminate the need for reserve requirements? Does it essentially prevent runs on banks?
The reserve requirement sets the required percent of vault cash plus deposits with regional Federal. What would be the effect on the actual money multiplier?
Where did all the pre-1965 silver quarters go? Is Gresham's law much of a problem in today's economy with paper money and credit cards?
During the late 1990s, the Clinton administration had very low deficits. Why then are economists concerned with the crowding out of private investment?
In general, was this an appropriate exercise of fiscal policy given that the economy was headed into a recession? Why?
Would such a change in the tax laws alter the automatic stabilization characteristics of the personal income tax?
Consumer spending is related to disposable personal income. Describe how changing tax rates would affect consumption and aggregate demand.
How does the economy today differ from that of the Great Depression, the economy Keynes used as the basis for the macroeconomic model discussed in this chapter?
Is there any reason to suspect that private investment might be better for the economy than government spending?
Assume you just lost your job and you have decided to take a monthlong break. How would you be classified (employed, unemployed, or not in the labor force)?
Explain why hyperinflation has such a devastating impact on economies. Explain what it takes to stop hyperinflation.
Do you think quarterly publication and revision in the next quarter would present problems for policymakers trying to control the business cycle?
What might be some of the problems associated with trying to include these intangibles in the NIPA?
Assume the federal government runs huge budget deficits today to finance. Describe why this scenario is likely to be bad for the macroeconomy.
What may be happening in the aggregate? How might individual experiences lead one astray in thinking about the macroeconomy? How might it help?
What would be the impact if minimum wages were structured this way?
Describe the tragedy of the commons. Give some examples. How might this tragedy be avoided?
Medicare recipients were permitted to sign up for federally subsidized drug benefit plan. Why Does deadline have anything to do with adverse selection? Explain.
What is the purpose of a warranty given by a used-car dealer? Evaluate one used-car warranty that gives your money back if not satisfied in certain time period.
When professors get tenure, essentially guaranteeing them lifetime jobs, does this affect the effort. What concept might be used to explain your answer?
What are the main characteristics of the market system? How does the market system answer the five fundamental questions?
Adam Smith, in his famous book The Wealth of Nations, noted, "Every individual . . neither intends to promot. What was Adam Smith describing and what did it do?
Since lawsuits are an important impediment to research and development of vaccines, what policies could the government institute to solve this problem?
Why is rent control not found in cities such as Phoenix, Arizona, or Denver, Colorado?