What is the paradox of thrift
Problem: When households become concerned with their future savings and attempt to increase their savings, how does this effect the overall economy? What is the Paradox of Thrift?
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The consumer price index is 125 in year 1 and 160 in year 2. All inflation is anticipated. If the Commerce Bank of Beverly Hills charges an interest rate of 35 percent in year 2, what is the bank’s real interest rate?
What are the three types of unemployment? Unemployment is seen by some as undesirable. Are all three types of unemployment undesirable? Could the advent of the Internet completely eliminate frictional unemployment?
The US Congress passed a stimulus bill in Feb. 2009. What was the justification for doing so? Given the magnitude of the stimulus amount, do you suppose it has achieved its intended outcomes? Explain you answer.
Problem 1) Is it true the USA may be moving into a period of stagflation? Problem 2) Is it false in the equation C + I + G + NX = GDP that the most volatile component is C?
When households become concerned with their future savings and attempt to increase their savings, how does this effect the overall economy? What is the Paradox of Thrift?
I am having a very difficult time discussing whether the internet could completely eliminate frictional unemployment? Also, why is unemployment necessary for the economy?
Small mistakes are the stepping stones to large failures. Please elucidate and provide an example of a seemingly small mistake with large consequences relevant to finance and economics.
Which of these are serious concerns for an economy? What type of unemployment is caused by the recession?
Do you think an athlete, having no formal education or no apparent skills training, should earn $1 million plus annually for athletics?
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