1. The information in the table below shows what the situation will be in 2017 if Congress and the President do not use fiscal policy.

(1) If the Congress and the President want to keep real GDP at its potential level in 2017, should they use an expansionary policy or contractionary policy? In your answer, be sure to explain whether Congress and the President should increase or decrease government purchases and taxes.

(2) If the Congress and the President are successful in keeping real GDP at its potential level in 2017, state whether each of the following will be higher, lower, or the same as it would have been if they had taken no action. (Note: you are comparing the variables at the new equilibrium point with the ones at the old equilibrium point in which the policy hasn’t been implemented.)

(a) Real GDP

(b) Potential GDP

(c) The inflation rate

(d) The unemployment rate

Home’s demand curve for wheat is D= 80 – 2P and its supply curve is S= 2P - 20. Foreign’s demand curve for wheat is D*= 80– 4P* and its supply curve is S*= 6P*- 30. You should very carefully draw each demand and supply curve, since your answers below must be reasonably close to correct. A small featureless graph will not be sufficient.

Now suppose Home imposes a quota of 20 on wheat imports. Quota rights are given to the Foreign government to give to its firms.

(c) What is the resulting equilibrium price of wheat in each country?

(d) Carefully graph the changes in consumer surplus, producer surplus, and government revenue in each country due to the quota.

(e) What tariff leads to the same outcome as (d)?

(f) Carefully graph the changes in consumer surplus, producer surplus, and government revenue in each country due to the tariff in (e)?

(g) How can the Home government change the way quota rights are assigned so that the outcome in (e) is the same as (f)?

In August of 2015, the Chinese central bank decided to reduce that nation's required reserve-deposit ratio from 18.5 percent to 18 percent. Assuming no change in the amount of cash held by the Chinese public, that commercial banks lend all their excess reserves, and that bank reserves was a constant 4,329 billion yuan both before and after the change.

a. The value of Chinese banks deposits was billion yuan before this change in the reserve-deposit ratio and billion yuan after the change.

b. Therefore the total change in deposits as a consequence of the change in the reserve-deposit ratio was billion yuan.

c.

An economy is described by the following equations:

The real interest rate, expressed as a decimal, is 0.10 (that is, 10 percent).

a. Find a numerical equation relating planned aggregate expenditure to output.

Instructions: Enter your response for mpc rounded to one decimal place.

PAE = ? + ? Y. ???

b. Using a table (or algebra), solve for short-run equilibrium output.     

Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Leave no cells blank. You must enter 'zero' for the answer to grade correctly.

Short-run equilibrium output: .

c. Show your result graphically using the Keynesian cross diagram.

draw graph

     
Instructions: On the graph below, use the line tool 'Exp.' to draw the expenditure line for levels of income between 9,500 and 10,500. Draw only the endpoints. Then use the point tool 'A' to locate the equilibrium level of income.

Hello

Please write on the differences between Warranties and Conditions. Explain how conditions relate to warranties.

No copy-paste, please

Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows:
Automobiles: Sales revenue = 200; payments to labor = 100; payments to capital = 100
Corn: Sales revenue = 100; payments to labor = 40; payments to land = 60
Holding the price of automobiles constant, suppose the increase in the price of corn is 20% and the increase in the wage is 10%.
What is the impact of this on the income of land and the income of capital? What has happened to the real income of land? What has happened to the real income of capital? What has happened to the real income of labor?

Suppose there are two countries A and B, and they produce good X and Y. Assume perfect competitive market and labor is the only factor of production. Answer following questions based on David Ricardo's comparative advantage model.

In country A, 2 laborers are required to produce one unit of good X and three laborers are required to produce one unit of good Y. In country B, five laborers are required to produce one unit of good X and six laborers are required to produce one unit of good Y. Both countries have 150 laborers respectively.

(1) what are the relative prices of country A, (Px/Py) and (Py/Px)? What are the relative prices of country B, (Px/Py) and (Py/Px)? Assume perfect competitive market.

(2) what is the relative price range in free international trade which is beneficial to both countries in (Px/Py) and (Py/Px)?

(3) Show the wages in each country both in terms of both good X and good Y.

(4) Suppose free international trade equilibrium relative price is set at (Py/Px)=4/3. Draw export supply curve and import demand curve for both countries in good X and in good Y. You may assume equilibrium quantity of your choice.

Explore these statements: Make each questions' answer reference back to Samsung.

- How have changes in technology contributed to the globalization of markets and production?

- Would the globalization of production and markets have been possible without these technological changes?

**You must address at least three scholarly resources in this section.** (Please include resources)

Consider the following, all of which will affect the demand for pounds on foreign exchange markets or the supply of pounds on foreign exchange markets (either one or the other – never both)

State what the effect of each of them will be (will it increase it or reduce it?)

a) There is an increase in demand in Britain for Renault motor cars
b) French consumers start to buy British beef again.
c) LEB (the London Electricity Board) is purchased by EDF (Electricité de France)
d) Large numbers of Russian students come to Britain to study.
e) EDF pays a large dividend to shareholders. Some shares in EDF are owned by a British pension fund.

Watch the attached video then click on the above link "The Fed " and create a thread with at least one page answering and explaining the following:

• What is the mission, or goals, of the Fed?
• Explain the structure of the Fed and the hierarchy of governance.
• Is the Fed a public or private entity? Who owns the Fed?
• If issuing Federal Reserve Notes stimulates the economy, why not print money indefinitely?
• Under what conditions would the Fed purchase securities like U.S. treasuries?
• How does the Fed regulate and supervise banks and why is this important?
• What services does the Fed provide to our country’s financial system and how did it come to be known as the “Bankers Bank”?
• Visit the debt clock website at http://www.usdebtclock.org/ (Links to an external site.) and locate the category M2. This is the present money supply in the hands of the public. Using a timer determine how much the money changes in 1 minute. Is it increasing or decreasing? What do you think this means for the overall economy?
• After you post your narrative, reply to at least two other students comments. Explain why you agree, or better yet, find others that take a different position and explain why you disagree.

1. The city of Ottawa is planning to build a man-make lake at LeBreton flats. The government would like to know how to value and monetize the benefits of such a project. You have been asked to advise the city of the appropriate approach to use for the valuation and monetization of the benefits. What approach will you advice the city to use? What are the key steps of your proposed approach? What are the limitations of the approach?

Which of the following is a FALSE statement regarding the Bank of Canada and monetary​ policy?

A.

The overnight loans rate and the Treasury bill rate move closely together.

B.

When the Bank of Canada sells​ securities, the interest rate rises and the Bank of​ Canada's assets and liabilities both decrease.

C.

The Bank of​ Canada's operating band is the target overnight rate plus or minus 0.25 percentage points.

D.

The Bank rate is always lower than the overnight​ loan's rate.

E.

The Bank of Canada Act places responsibility for the conduct of monetary policy on the​ Bank's Governing Council.

Variation in the price of agricultural and non-agricultural commodities is determined over time, by demand-supply dynamics. The last two decades have seen a significant increase in the volume of international trade and business due to globalisation and liberalisation sweeping across the world. This has led to rapid and unpredictable variations in financial assets prices, interest rates and exchange rates, and subsequently, to exposing Multi-National Corporations to financial risk. As a result, financial markets have experienced rapid variations in interest and exchange rates and stock market prices, thus exposing the corporate world to a state of growing financial risk. We can hedge the risk of price variations in stocks, bonds, commodities, currencies, interest rates, market indices etc. Given this context please conduct the necessary research and answer the following questions.

1)      How is a country's economic well-being enhanced through free international trade in goods and services? Provide and discuss two relevant examples specific to your jurisdiction.   (10marks)

2)      Outline and discuss two methods of payments in international trade and two (2 ) methods of financing international trade for a selected Multi National Corporation in your jurisdiction   

3)      Define and discuss two (2) similarities and two (2) differences between a futures contract and a forward contract. When would the use of one be preferred over the other?   

A key dynamic within any Multi National Corporation (MNC) is management of cash and also foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics. Within the Caribbean and South American jurisdiction, the economic framework is tightly connected with the major Asian economies of China and Japan, as well as the United States and the United Kingdom. The Caribbean and South American economy respectively, have been a barometer of the global economic cycle.

For the South American economy, many Multi-National Corporations   have made significant investments in order to achieve a reduction in the production cost of goods and also diversification benefits. Despite the benefits that could possibly materialize, some South American countries have weak banking systems and also have not been resilient through Global market shocks and Financial Crisis. This weakness may be as a result of politics and the quality of prudential supervision. Given this context, respond to the following questions which require research with respect to the localized context and also within the current market dynamics.

1) You have been asked to evaluate possible sites for a South American production facility that will manufacture your firm's products and sell them to the United Kingdom and Japanese market. Outline and discuss five (5) real exchange rate considerations you should entertain in your evaluation?

Give a brief definition and explanation of the following terms

a)Standard wars

b)Patent troll

c)‘Freemium’products or services

d)Product bundling