Assignment: Managerial Economics
1. Explain the process of Financial Intermediation. Explain the benefits and any associated problems that are associated with this function.
2. Discuss the moral hazard referred to as Conflicts of Interest. Give a recent example of one that existed and discuss the actual or proposed remedy. Give your analysis of whether this remedy adequately addresses the problem. Explain your rationale.
3. Discuss the functions of Interest Rates in the economy. Compare and contrast two different theories of interest rates.
4. Discuss the tools of Monetary Policy in the United States. Discuss the effects of each tool and explore the associated impact on conflicting goals.
5. The market mechanism is the tendency for supply and demand to equilibrate, so that there is neither excess demand nor excess supply. Provide a graphical and written explanation of that statement.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.