Q: Consider the (rather implausible) scenario in which the U.
Consider the (rather implausible) scenario in which the U.S. government phases out all Social Security transfers to retirees. Assuming the goods market is in equilibrium, graph the new saving curve an...
See AnswerQ: The financial crisis that hit the United States first and then the
The financial crisis that hit the United States first and then the world economy starting in fall 2007 meant that the future prospects of many firms looked gloomy at best for some time. Comment on the...
See AnswerQ: On March 23, 2010, President Obama signed into law a
On March 23, 2010, President Obama signed into law a major overhaul of the U.S. healthcare system. The Congressional Budget Office estimated that this legislation will reduce the U.S. government budge...
See AnswerQ: Suppose Japan has a GDP of $5 trillion, and that
Suppose Japan has a GDP of $5 trillion, and that its national savings rate is 25%. Assuming Japan is an open economy, a) calculate Japan’s investment if net exports are 1% of GDP. b) calculate Japan’s...
See AnswerQ: Go to the St. Louis Federal Reserve FRED database, and
Go to the St. Louis Federal Reserve FRED database, and find data on the 1-Year Treasury Rate (GS1) and the GDP Deflator price index (GDPDEF). For (GS1), choose the frequency setting as “quarterly”; fo...
See AnswerQ: Consider a small open economy that is currently running a trade surplus
Consider a small open economy that is currently running a trade surplus. Answer the following questions using a graphical representation of desired saving and investment in the small open economy: a)...
See AnswerQ: Comment on the effect of a decrease in autonomous investment on wealth
Comment on the effect of a decrease in autonomous investment on wealth when the economy can be considered a a) closed economy. b) small open economy.
See AnswerQ: In the movie The Count of Monte Cristo (2002), a
In the movie The Count of Monte Cristo (2002), a scene shows the main character paying for an estate in France using a wagon full of silver and gold coins. During the 1800s, it was not common for peop...
See AnswerQ: Suppose Alex earned $500 (nominal capital gain) from selling
Suppose Alex earned $500 (nominal capital gain) from selling stock he bought ten years ago. During the last ten years, prices increased significantly, which means that Alex’s real capital gain is only...
See AnswerQ: It is not unusual to find a business that displays a sign
It is not unusual to find a business that displays a sign reading “no personal checks, please.” Based on this observation, comment on the relative degree of liquidity of a checking account and currenc...
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