Questions:
1) Share markets all over the world often increase or decrease together. Why do you think it is the case? What does a rise in the stock market indicate to you about the level of current and expected growth in the world economy?
2) Over the past 10 years, new computer technology has enabled firms to reduce substantially the amount of inventories they hold for each dollars of sales. Illustrate the effect of this change on the figure of the market for loanable funds.
3) What would be the impact on the money supply, bank reserves and interest rates if the central bank announced that from tomorrow, coins would no longer be accepted as legal tender (and any new notes are not issued).
4) Find out about the current level of the government debt (by a measure of debt-to-GDP ratio) in your economy. Do research on why the level of the government debt is so high, and summarise your findings (Provide a writing of 1 page, nothing less or more). You need to show the data and why they come from.
(Question 4 is based on Singapore debt-to-GDP ratio)
Please provide figures as input with formula as examples for the above question.