Q: Many economists have recommended higher capital requirements to solve the problems associated
Many economists have recommended higher capital requirements to solve the problems associated with financial crises. (a) What is a capital requirement? (b) How could higher capital requirements potent...
See AnswerQ: The University of Chicago Booth School of Business hosts an online panel
The University of Chicago Booth School of Business hosts an online panel of economic experts every two weeks or so to consider a timely economic question. A specific economic opinion is put forward, a...
See AnswerQ: According to the life- cycle/permanent- income hypothesis,
According to the life- cycle/permanent- income hypothesis, consumption depends on the present discounted value of income. An increase in the real interest rate will make future income worth less, ther...
See AnswerQ: According to the permanent income hypothesis, how does your consumption change
According to the permanent income hypothesis, how does your consumption change in each of the following scenarios? (The first question is answered for you.) To keep things simple, suppose the interest...
See AnswerQ: Consider the following changes in the macro economy. Show how to
Consider the following changes in the macro economy. Show how to think about them using the IS curve, and explain how and why GDP is affected in the short run. (a) The government offers a temporary in...
See AnswerQ: Suppose Congress and the president decide to increase government purchases today,
Suppose Congress and the president decide to increase government purchases today, say for national defense. Explain how this affects the IS curve. How does your answer depend on the way in which the s...
See AnswerQ: Suppose the government announces an increase in Social Security transfers. Which
Suppose the government announces an increase in Social Security transfers. Which aggregate demand parameter is affected? How and why is it affected? How does this increase affect the graph of the IS c...
See AnswerQ: Suppose a large earthquake destroys many houses and buildings on the West
Suppose a large earthquake destroys many houses and buildings on the West Coast but fortunately results in little loss of life. Show how to think about this event using the IS curve. Explain how actua...
See AnswerQ: Using the FRED database, construct a graph containing two data series
Using the FRED database, construct a graph containing two data series, one for real GDP (“GDPC1”) and another for real government consumption and investment expenditures (“GCEC96”). Use the “Add Data...
See AnswerQ: By how much does GDP rise in each of the following scenarios
By how much does GDP rise in each of the following scenarios? Explain. (a) A computer company buys parts from a local distributor for $1 million, assembles the parts, and sells the resulting computers...
See Answer
