Questions from Macroeconomics

Q: What is the user cost of capital? How is this user

What is the user cost of capital? How is this user cost related to investment in physical capital?

Q: When is the value of the stock market equal to the value

When is the value of the stock market equal to the value of the capital stock? How is this related to Tobin’s q?

Q: What is a “dividend return” and a “capital gain

What is a “dividend return” and a “capital gain,” and how do these terms enter the arbitrage equation when it is written in percentages?

Q: What does it mean when economists say that the stock market is

What does it mean when economists say that the stock market is, at least to a great extent, “informationally efficient”?

Q: Explain the flow version of the government budget constraint. Explain the

Explain the flow version of the government budget constraint. Explain the government’s intertemporal budget constraint.

Q: What is the fiscal problem of the twenty- first century,

What is the fiscal problem of the twenty- first century, and what are some possible solutions?

Q: In what sense does a trade deficit represent borrowing from the rest

In what sense does a trade deficit represent borrowing from the rest of the world?

Q: Why do countries trade? What are the benefits and costs of

Why do countries trade? What are the benefits and costs of trade?

Q: Suppose there are two countries in the world, and one is

Suppose there are two countries in the world, and one is better than the other at producing every good. Will the countries trade? Why or why not?

Q: Discuss the extent to which the U.S. trade deficit

Discuss the extent to which the U.S. trade deficit and net foreign debt are serious economic problems.