Interest Rate Tax

Consider a two-period economy, where the consumers can lend or borrow and the income of the consumers in both periods is exogenous. Suppose the government introduces a tax on the interest earnings of the lenders. That is, while borrowers face a real interest rate of r before and after the tax is introduced, lenders face a real interest rate of (1 − x)r, where x is the tax rate, after the tax is introduced.

1. Show the effects of the increase in the tax rate on consumer’s lifetime budget constraint.

2. How does the tax affect the optimal choices (consumption in current and future periods and saving)? Show how income and substitution effects matter for your answer, and how it matters whether the consumer is initially a borrower or a lender

The world has been struggling to contain the spread of the Covid-19 pandemic using measuring such as lockdowns and travel restrictions. These measures have created economic pain all across the world. To help ease the economic impact, governments and monetary authorities have mooted stimulus packages. Bank of South Africa, in particular, has taken a number of measures to support economic activity and avoid a collapse of the economy. Among these measures include: a decision to keep monetary policy unchanged despite rising inflation; $1 billion stimulus package for strategic sectors; promise to provide more liquidity to the money market. As a student of monetary policy, discuss the expected economic implications of these measures citing practical examples.

Discuss Kaushik basu model for child labor

Do you think management of water will be a challenging issue in Saudi Arabia within the next few decades?

Steel industry is highly competitive globally. A typical firm in the steel manufacturing industry in Pittsburgh, "Super Steel" in 1980s has the following production function... y= K²L. Their production plan or contract is to deliver 8192 tons of steel per day. The capital price is $32 per day and the labor price is $62 per day. How many labor would they need to hire in the 1980s? What is the cost to produce 8192 tons for SuperSteel?

In 2000s there are lots of international trade about steel. Suppose there's another steel manufacturing firm in china, "SinoSteel," that produces the exact same products as super steel. They can also produce 8192 tons per day with the production function y= KL². The capital price in china is $32 per day, and the labor price is $16 per day. So, how many labor would SinoSteel hire? What is the cost to produce 8192 tons for SinoSteel?

You offer Donny the choice between two bundles of Coffee (C) and Muffins (M). The

options are(C,M) = (6, 4)and(C,M) = (8, 2), and Donny indicates he prefers the second option.

(a) Write a utility function for Donny that is consistent with his choice.

Suppose you offer him a third option of(C,M) = (7, 6)in addition to the original two, and that Donny indicates he prefers this third option to the first two.

(b) Write a utility function for Donny that is consistent with his choice. It is possible it may be

the same as your answer from part (a).

Pick one of the 4 Product Market. Perfect Competition, Monopolistic Competition, Oligopoly or Monopoly. Explain the different characteristics of the product market that you have chosen. Explain how your Product Market is different from the other 3 product markets.

. Describe how policy makers should approach macroeconomic policy now that the scientific evidence clearly shows that future growth of output using current technologies will cause an environmental disaster that threatens the very survival of the human species. Use macroeconomic models to explain the problems and so outline possible solutions . how much we change the social and economic system that are currently altering the natural environment? Is more economic growth possible?

For this assignment you will read the scenario below: You are the President of the United States, and your first term ends in a year. The cost-control mechanism you instituted 2 years ago, based on patient cost sharing and managed competition, has not worked, and the American people are upset about persistent health care inflation. You are preparing for a major television address on health care costs. Based on this scenario you will develop a 10-12 PowerPoint that includes the following:

1. A definition of patient cost sharing and managed competition. What are these practices and what is the expected outcome?

2. An explanation of whether these strategies are considered ‘painful’ or ‘painless’ cost controlling mechanisms (answer Only 2)

3. A proposal on either the expansion of current cost-sharing programs and more regulations to control costs or the elimination of the two current control mechanisms in favor of new ones.

Why has the HRM function increased in stature and influence in many organizations and How has increased globalization influenced the way HRM is practiced in the United States?

There are many ways of measuring a recession. Look at this article: “What is a recession anyway” 2019/03/25. Based on the rule of thumb approach mentioned in the article, find and download into excel the chained 2012 quarterly estimates (Look under the “prices” thumbnail on the StatCan website to find this “chained” data series and look for Table: 36-10-0104-01) for the period going from first quarter 1961 to the fourth quarters 2018 (seasonally adjusted series) to determine for which periods Canada has had a recession over this 47 year period (chained GDP is the new way of defining what we known as being real GDP). Calculate the quarter-to-quarter changes in GDP in the Excess file on the sheet named GDP quarterly. Draw a line chart showing the quarter-to-wuarter percent rates of change and include it in the Excel file on the sheet named GDP quarterly. Include the chart on that Excel sheet and copy and paste it as an image in your main document. Also highlight in the Table in Excel on the sheet named GDP quarterly the periods for which Canada has been in a recession according to the above definition. Also write down the recessionary periods (quarter and years) in your document.

How is sustainable long run economic growth effected by scarcity of natural resources and environmental degradation?

How will climate change effect long run economic growth in the U.S.? How will climate change effect long run economic growth in other countries and regions of the world?

What policies do you recommend to address the effects of climate change and ensure long run economic growth?

1. Explain how each of the following transactions generates a credit and a debit in the American balance of payments accounts and described (BRIEFLY) how each entry would be classified:
   1. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank.
   2. The Korean government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy Korean currency from its citizens
   3. A tourist from Detroit buys a meal at a restaurant in Lyons, France, paying with a traveler’s check
   4. A California winemaker contributes a case of cabernet sauvignon for a London based win tasting.
   5. A US owned factory in Britain uses local earnings to buy additional machinery