Questions from Macroeconomics

Q: What is the user cost of capital? What variables determine this

What is the user cost of capital? What variables determine this cost, and how does a change in each variable affect it?

Q: Explain how the user cost of capital and the expected marginal product

Explain how the user cost of capital and the expected marginal product of capital together determine the desired level of capital.

Q: According to the neoclassical theory of investment, how do firms determine

According to the neoclassical theory of investment, how do firms determine their optimal amount of investment spending once they have identified their desired level of capital?

Q: Go to the St. Louis Federal Reserve FRED database and find

Go to the St. Louis Federal Reserve FRED database and find data on the net saving rate as a percentage of national income (W207RC1A156NBEA). a) Calculate the average net saving rate over the period fr...

Q: The table below shows the inflation rate and the level of real

The table below shows the inflation rate and the level of real GDP under the anti-inflation policy known as the Volcker disinflation for two periods in the early 1980s. a) Use the data in the table...

Q: Explain how the desired levels of capital and investment are affected by

Explain how the desired levels of capital and investment are affected by changes in the expected marginal product of capital, the user cost of capital, and taxes.

Q: Why do firms hold inventories, and why is their inventory investment

Why do firms hold inventories, and why is their inventory investment a matter of interest to macroeconomists?

Q: What is Tobin’s q? How does it provide a theory of

What is Tobin’s q? How does it provide a theory of investment spending?

Q: How are Tobin’s q theory and the neoclassical theory of investment related

How are Tobin’s q theory and the neoclassical theory of investment related?

Q: What are the determinants of residential investment?

What are the determinants of residential investment?