Questions from Macroeconomics

Q: The problem of time inconsistency applies to fiscal policy as well as

The problem of time inconsistency applies to fiscal policy as well as to monetary policy. Suppose the government announced a reduction in taxes on income from capital investments, like new factories....

Q: Holding other things constant, an increase in a nation’s interest rate

Holding other things constant, an increase in a nation’s interest rate reduces a. national saving and domestic investment. b. national saving and the net capital outflow. c. domestic investment and th...

Q: If a popular TV show on personal finance convinces Americans to save

If a popular TV show on personal finance convinces Americans to save more for retirement, the ________ curve for loan able funds would shift, driving the equilibrium interest rate ________. a. supply,...

Q: Economists in Funlandia, a closed economy, have collected the following

Economists in Funlandia, a closed economy, have collected the following information about the economy for a particular year: Y = 10,000 C = 6,000 T = 1,50 G = 1,700 The economists also estimate that t...

Q: Describe a change in the tax code that might increase private saving

Describe a change in the tax code that might increase private saving. If this policy were implemented, how would it affect the market for loan able funds?

Q: The benefit of diversification when constructing a portfolio is that it can

The benefit of diversification when constructing a portfolio is that it can eliminate a. speculative bubbles. b. risk aversion. c. firm-specific risk. d. market risk.

Q: For each of the following kinds of insurance, give an example

For each of the following kinds of insurance, give an example of behavior that can be called moral hazard and another example of behavior that can be called adverse selection. a. health insurance b. c...

Q: What factors should a stock analyst think about in determining the value

What factors should a stock analyst think about in determining the value of a share of stock?

Q: Unionized workers are paid about _____ percent more than similar nonunion workers

Unionized workers are paid about _____ percent more than similar nonunion workers. a. 2 b. 5 c. 15 d. 40

Q: Economists use labor-market data to evaluate how well an economy

Economists use labor-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment–population...