Problem 1. Given the demand for and the supply of a commodity that you yourself consume on a regular basis, i.e., I might choose coffee, what price will be the equilibrium price of this commodity? Explain why this price will tend to prevail in the market and why higher (lower) prices, if the do exist temporarily, will tend to fall (rise). Provide an example. 20 Possible Points. Provide references in APA format.
Problem 2. Explain the fiscal policies that would be advocated during a recession and during a period of inflation by those who (a) wish to expand the public sector and (b) wish to contract the size of government. Give an example. Then, assuming you are the President of the US today what policies would you implement and why? 20 Possible Points. Provide references in APA format.
Problem 3. Explain how the Board of Governors and the Federal Reserve Banks can influence income, output, employment, and the price level. In your explanation, employ the following concepts: reserves, excess reserves, the supply of money, the availability of bank credit and the rate of interest. Then tell us what if any of these tools the fed is implementing presently and why or why not? Provide an example. 20 Possible Points. Provide references in APA format.
Problem 4. What types of events cause the exchange rate for a foreign currency to appreciate or to depreciate? How will each event affect the exchange rate for a foreign currency and for a nation's own currency? Give current examples along with your explanation. 20 Possible Points. Provide references in APA format.
Problem 5. Explain how public interest regulation can lead to increased costs and economic inefficiency as it is practiced by US commissions and agencies (our Government). Using your research skills give an example to supplement your response. 20 Possible points. Provide references in APA format.