Q: Choose two countries that interest you—one rich and one poor
Choose two countries that interest you—one rich and one poor. What is the income per person in each country? Find some data on country characteristics that might help explain the difference in income:...
See AnswerQ: The Fed is considering two alternative monetary policies: • holding
The Fed is considering two alternative monetary policies: • holding the money supply constant and letting the interest rate adjust, or • adjusting the money supply to hold the interest rate constant....
See AnswerQ: Suppose that the price level relevant for money demand includes the price
Suppose that the price level relevant for money demand includes the price of imported goods and that the price of imported goods depends on the exchange rate. That is, the money market is described by...
See AnswerQ: Some economists believe that taxes have an important effect on the labor
Some economists believe that taxes have an important effect on the labor supply. They argue that higher taxes cause people to want to work less and that lower taxes cause them to want to work more. Co...
See AnswerQ: Suppose that people’s expectations of inflation are subject to random shocks.
Suppose that people’s expectations of inflation are subject to random shocks. That is, instead of being merely adaptive, expected inflation in period t, as seen in period t - 1, is Et-1πt =π t-1 + nt...
See AnswerQ: Consider two savings accounts that pay the same interest rate. One
Consider two savings accounts that pay the same interest rate. One account lets you take your money out on demand. The second requires that you give 30-day advance notification before withdrawals. a....
See AnswerQ: Why might the level of government debt affect the government’s incentives regarding
Why might the level of government debt affect the government’s incentives regarding money creation?
See AnswerQ: Abby consumes only apples. In year 1, red apples cost
Abby consumes only apples. In year 1, red apples cost $1 each, green apples cost $2 each, and Abby buys 10 red apples. In year 2, red apples cost $2, green apples cost $1, and Abby buys 10 green apple...
See AnswerQ: Explain why the aggregate demand curve slopes downward.
Explain why the aggregate demand curve slopes downward.
See AnswerQ: Suppose that an increase in consumer confidence raises consumers’ expectations about their
Suppose that an increase in consumer confidence raises consumers’ expectations about their future income and thus increases the amount they want to consume today. This might be interpreted as an upwar...
See Answer
