Question: U.K. Prime Minister David Cameron on

> What are the main items of government revenues and outlays?

> Unemployment is a more serious economic problem than inflation and it should be the focus of the Bank of Canada’s monetary policy.” Evaluate this statement and explain why the Bank’s policy goal is a target inflation rate.

> How might using the Taylor rule improve the Fed’s monetary policy?

> How might inflation targeting improve U.S. monetary policy?

> How do the Bank’s actions influence the inflation rate and how long does it take for inflation to respond to the Bank’s policy changes?

> How do the Bank’s actions influence real GDP and how long does it take for real GDP to respond to the Bank’s policy changes?

> How do the Bank of Canada’s actions change the exchange rate?

> Do interest rates fluctuate in response to the Bank of Canada’s actions?

> Describe the channels by which monetary policy ripples through the economy and explain how each channel operates.

> What happens when the Bank of Canada buys securities in the open market?

> What is the operating band?

> John H. Cochrane, a professor of finance at the University of Chicago, thinks we face the risk of inflation, and if inflation does break out the Fed will not have the ability to stop it and it will “bring stagnation rather than prosperity.” The source of

> Summarize the Bank of Canada’s monetary policy decision-making process.

> What is the Bank of Canada’s monetary policy instrument?

> How does the core inflation rate differ from the overall CPI inflation rate?

> What is the Bank of Canada’s monetary policy objective?

> Answer the following questions. a. What was the state of the Canadian economy in 2014? b. What was Carolyn Wilkin’s expectation about future real GDP growth and inflation in September 2014? c. How would maintaining the overnight rate at 1 percent influen

> Inflation targeting promotes well-anchored inflation expectations, which facilitates more effective stabilization of output and employment. Thus inflation targeting can deliver good results with respect to output and employment as well as inflation. What

> Suppose that the Reserve Bank of New Zealand is following the Taylor rule. In 2009, it sets the official cash rate (its equivalent of the overnight loans rate) at 4 percent a year. If the inflation rate in New Zealand is 2 percent a year, what is its out

> U.S. Federal Reserve’s Plosser Opposes QE3 Federal Reserve Bank of Philadelphia president Charles Plosser does not think that monetary policy can “do much to speed up the slow progress” in the labour market and opposes the Fed’s latest round of stimulus,

> Robert Shiller, Professor of Economics at Yale University, predicted that there was a very real possibility that the United States would be plunged into a Japan-style slump, with house prices declining for years. If the U.S. Federal Reserve had agreed wi

> Traders continued to make bets in favour of the yen, sending the U.S. dollar to a record low against the Japanese currency. a. How do “bets in favour of the yen” influence the exchange rate? b. How does the U.S. Federal Reserve’s monetary policy influenc

> After the first two months of the current fiscal year, Canada’s deficit sits at $4.4 billion, compared with $7.5 billion in the same period of 2009 when the economy was still in recession. The government projects that the budget shortfall of $54 billion

> From 2007 to 2009, the long-term real interest rate paid by the safest corporations increased from 2.3 percent to 3.8 percent. During that same period, the overnight loans rate fell from 4.5 percent to 0.25 percent a year. How does the overnight loans ra

> From 2007 to 2009, the long-term real interest rate paid by the safest corporations increased from 2.3 percent to 3.8 percent. During that same period, the overnight loans rate fell from 4.5 percent to 0.25 percent a year. What role does the long-term re

> At the end of 2009, the unemployment rate was 8.3 percent, the inflation rate was 0.8 percent, and the overnight loans rate target was 0.25 percent. In mid- 2014, the unemployment rate was about 7 percent, the inflation rate was 2.1 percent, and the over

> At the end of 2009, the unemployment rate was 8.3 percent, the inflation rate was 0.8 percent, and the overnight loans rate target was 0.25 percent. In mid- 2014, the unemployment rate was about 7 percent, the inflation rate was 2.1 percent, and the over

> At the end of 2009, the unemployment rate was 8.3 percent, the inflation rate was 0.8 percent, and the overnight loans rate target was 0.25 percent. In mid- 2014, the unemployment rate was about 7 percent, the inflation rate was 2.1 percent, and the over

> Looking at the overnight loans rate since 2000, identify periods during which, with the benefit of hindsight, the rate might have been kept too low. Identify periods during which it might have been too high.

> The U.S. Federal Reserve Act of 2000 instructs the Federal Reserve to pursue its goals by “maintain[ing] long-run growth of the monetary and credit aggregates commensurate with the economy’s long-run potential to increase production.” a. How would follow

> In the 1980s, it was Argentina, Mexico, and the Philippines that struggled with unsustainable debt loads. In the 1990s, it was Russia and the go-go economies of East Asia. Today, it is the United States, Japan, and Europe. a. How would the budget deficit

> In the 1980s, it was Argentina, Mexico, and the Philippines that struggled with unsustainable debt loads. In the 1990s, it was Russia and the go-go economies of East Asia. Today, it is the United States, Japan, and Europe. How does a government get funds

> Suppose Parliament decided to strip the Bank of Canada of its monetary policy powers and decided to legislate interest rate changes. How would you expect the policy choices to change? Which arrangement would most likely provide price stability?

> Members expected real GDP growth to be moderate over coming quarters and then to pick up very gradually, with the unemployment rate declining only slowly. With longer-term inflation expectations stable, members anticipated that inflation over the medium

> The Bank of Canada and the Government of Canada have agreed that the Bank will achieve an inflation rate target. Based on the performance of Canadian inflation and unemployment, has the Bank’s inflation targeting been successful?

> The NDP called for immediate action to create jobs by investing in infrastructure and green energy programs to give the economy a kickstart. It needs more than corporate tax cuts, the NDP said. What would have a larger effect on aggregate demand: corpora

> The NDP called for immediate action to create jobs by investing in infrastructure and green energy programs to give the economy a kickstart. It needs more than corporate tax cuts, the NDP said. Explain whether, and if so how, “investing in infrastructure

> The NDP called for immediate action to create jobs by investing in infrastructure and green energy programs to give the economy a kickstart. It needs more than corporate tax cuts, the NDP said. Is the NDP’s proposed infrastructure spending a fiscal stimu

> Jim Flaherty tabled a 2011 budget with a deficit for this year gradually falling to a surplus in 2015. Mr. Flaherty said the budget aims to find that balance between helping Canadian families and businesses and securing economic growth. Explain the effec

> The economy is in a recession, the recessionary gap is large, and there is a budget deficit. a. Do we know whether the budget deficit is structural or cyclical? Explain your answer and use a graph to illustrate it. b. Do we know whether automatic fiscal

> The economy is in a recession, and the recessionary gap is large. a. Describe the discretionary and automatic fiscal policy actions that might occur. b. Describe a discretionary fiscal stimulus package that could be used that would not bring an increase

> Suppose that instead of taxing nominal capital income, the government taxed real capital income. Use graphs to explain and illustrate the effect that this change would have on: a. The tax rate on capital income. b. The supply of and demand for loanable f

> The government is considering raising the tax rate on labour income and asks you to report on the supply-side effects of such an action. Use appropriate graphs and report directions of change, not exact magnitudes. What will happen to: a. The supply of l

> At the end of 2011, China’s government debt was ¥4,700 billion (¥ is yuan, the currency of China). In 2012, the government spent ¥6,000 billion and ended the year with a debt of ¥5,300 billion. How much did the government receive in tax revenue in 2012?

> Does Canada have a stable short-run Phillips curve? Explain why or why not.

> How do we tell whether a budget deficit needs discretionary action to remove it?

> How do taxes and transfer payments programs work as automatic fiscal policy to dampen the business cycle?

> What is the Laffer curve and why is it unlikely that Canada is on the “wrong” side of it?

> Why are income taxes on capital income more powerful than those on labour income?

> In The New York Times articles and in blogs, economists Paul Krugman and Joseph Stiglitz say that, with slow recovery from recession, there is a need for more fiscal stimulus in both the United States and Europe despite the large federal budget deficit a

> Answer the following questions. a. What was the state of the Japanese economy in 2013? b. Explain the effects of Japan’s high level of government spending and debt on the level of employment and potential GDP. c. Explain how inflation and faster growth m

> China’s economy is slowing from its normal 9 percent or higher economic growth rate to just below 9 percent. The source of the slowdown is the global economic slowdown that is restricting exports growth and the government’s deliberate decision to discour

> The economy is growing slowly, the inflationary gap is large, and there is a budget deficit. a. Do we know whether the budget deficit is structural or cyclical? Explain your choice and sketch a graph to illustrate your answer. b. Do we know whether autom

> The economy is in a boom and the inflationary gap is large. a. Describe the discretionary and automatic fiscal policy actions that might occur. b. Describe a discretionary fiscal restraint package that could be used that would not produce serious negativ

> If the natural unemployment rate increases, what happens to the short-run Phillips curve and the long-run Phillips curve?

> How does demand-pull inflation begin?

> What are some problems that can arise when each stage of a supply chain focuses solely on its own profits when making decisions? Identify some actions that can help a retailer and a manufacturer work together to expand the scope of strategic fit.

> What is the difference in implied uncertainty faced by a convenience store chain such as 7-Eleven, a supermarket chain, and a discount retailer such as Costco?

> What are some factors that influence implied uncertainty? How does the implied uncertainty differ between an integrated steel mill that measures lead times in months and requires large orders and a steel service center that promises 24-hour lead times an

> In what way do supply chain flows affect the success or failure of a firm like Amazon? List two supply chain decisions that have a significant impact on supply chain profitability.

> Consider the supply chain involved when a customer orders a book from Amazon. Identify the push/pull boundary and two processes each in the push and pull phases.

> What types of networks are best suited to highly differentiated products?

> Consider a firm such as Ford, with more than 150 facilities worldwide. List the pros and cons of having many facilities and why it may or may not be suitable for the automobile industry.

> Consider a firm such as Dell, with very few production facilities worldwide. List the pros and cons of this approach and why it may or may not be suitable for the computer industry.

> McMaster-Carr sells maintenance, repair, and operations equipment from five warehouses in the United States. WW Grainger sells products from more than 350 retail locations, supported by several warehouses. In both cases, customers place orders using the

> Consider the supply chain involved when a customer purchases a book at a bookstore. Identify cycles in this supply chain and the location of the push/pull boundary.

> Amazon.com has built new warehouses as it has grown. How does this change affect various cost and response times in the Amazon.com supply chain?

> How is the rise in transportation costs likely to affect global supply chain networks?

> How do import duties and exchange rates affect the location decision in a supply chain?

> How do the location and size of warehouses affect the performance of a firm such as Amazon.com? What factors should Amazon.com take into account when making this decision?

> Consider the sale of home improvement products at Home Depot or a chain of hardware stores such as True Value. Who can extract the greatest benefit from going online? Why?

> Is e-business likely to be more beneficial in the early part or the mature part of a product’s life cycle? Why?

> Why has e-business been more successful in the computer hardware industry compared to the grocery industry? In the future, how valuable is e-business likely to be in the computer hardware industry?

> In the future, do you see the value added by distributors decreasing, increasing, or staying about the same?

> What types of distribution networks are typically best suited for commodity items?

> A distributor has heard that one of the major manufacturers from which it buys is considering going direct to the consumer. What can the distributor do about this? What advantages can it offer the manufacturer that the manufacturer is unlikely to be able

> What are some strategic planning and operational decisions that must be made by an apparel retailer like The Gap?

> A specialty chemical company is considering expanding its operations into Brazil, where five companies dominate the consumption of specialty chemicals. What sort of distribution network should this company use?

> Why should an e-business such as Amazon.com build more warehouses as its sales volume grows?

> Amazon.com sells books, music, electronics, software, toys, and home improvement products online. In which product category does e-business offer the greatest advantage compared with a retail store chain? In which product category does e-business offer t

> What differences in the retail environment may justify the fact that the fast-moving consumer goods supply chain in India has far more distributors than in the United States?

> On which supply chain drivers should a firm trying to shrink its cash-to-cash cycle focus?

> How can the full set of logistical and cross-functional drivers be used to create strategic fit for a PC manufacturer targeting both time sensitive and price conscious customers?

> What are some industries in which products have proliferated and life cycles have shortened? How has the supply chains in these industries adapted?

> How can a home delivery company like Peapod use pricing of its delivery services to improve its profitability?

> Motorola has gone from manufacturing all its cell phones in-house to almost completely outsourcing the manufacturing. What are the pros and cons of the two approaches?

> How could an industrial supplies distributor use information to increase its responsiveness?

> Why should a firm like Dell take into account total supply chain profitability when making decisions?

> How could a bicycle manufacturer increase responsiveness through its facilities?

> How could an auto manufacturer use transportation to increase the efficiency of its supply chain?

> Would you expect a brick-and-mortar retailer or an online retailer to have a higher asset turnover? Which supply chain drivers impact asset turnover?

> How could a grocery store use inventory to increase the responsiveness of the company’s supply chain?

> Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies.

> Reconsider the previous four questions for other companies such as Amazon.com, a supermarket chain, and auto manufacturer, and a discount retailer such as Wal-Mart.

> How can Nordstrom expand the scope of the strategic fit across the supply chain?

> What level of responsiveness would be most appropriate for Nordstrom’s supply chain? What should the supply chain be able to do particularly well?

> Where would you place the demand faced by Nordstrom on the implied demand uncertainty spectrum? Why?

> How would you characterize the competitive strategy of a high-end department store chain such as Nordstrom? What are the key customer needs that Nordstrom aims to fill?

> Consider the purchase of a can of soda at a convenience store. Describe the various stages in the supply chain and the different flows involved.

> Explain the advantages of using market price as a transfer price.