Questions from Managerial Economics

Q: Why does debt deflation make financial crises worse?

Why does debt deflation make financial crises worse?

Q: How did financial innovations in mortgage markets contribute to the 2007–

How did financial innovations in mortgage markets contribute to the 2007–2009 financial crisis?

Q: What principal-agent problems resulted from the originate-to-

What principal-agent problems resulted from the originate-to-distribute mortgage lending model?

Q: What prevented the financial crisis of 2007– 2009 from becoming a

What prevented the financial crisis of 2007– 2009 from becoming a depression?

Q: Identify the four main categories of government spending and give an example

Identify the four main categories of government spending and give an example of each. What are the government’s four main revenue sources?

Q: How does the Ricardian equivalence view of the effects of tax cuts

How does the Ricardian equivalence view of the effects of tax cuts (and budget deficits) differ from the traditional view? What objections to the Ricardian equivalence view have been raised?

Q: Go to the St. Louis Federal Reserve FRED database, and

Go to the St. Louis Federal Reserve FRED database, and find data on the total government debt as a percentage of GDP (GFDEGDQ188S) and gross domestic product (GDP). a) Report the most current availabl...

Q: What is a budget deficit, and what are the two main

What is a budget deficit, and what are the two main ways in which the government can finance deficit spending? Which of these methods of financing deficits does the U.S. government most commonly use?...

Q: What factors have influenced the debt-to GDP ratio in the

What factors have influenced the debt-to GDP ratio in the United States since 1940?

Q: What arguments should be considered in assessing the burden that government debt

What arguments should be considered in assessing the burden that government debt imposes on future generations?