There are several popular non-activist monetary proposals that include the following: a constant money growth rate rule, a predetermined money growth rate rule, the Taylor rule, inflation targeting and nominal GDP targeting. Discuss some of the pros and cons of at least three of these aforementioned monetary policy proposals.
In: Economics
This week we are studying monetary policy. There are two major opinions on what the appropriate monetary policy should be: activists argue that monetary policy should be deliberately used to smooth out the business cycle while non-activists argue against discretionary monetary policy. Discuss some of the reasons why the activists favor intervention and the non-activists do not.
In: Economics
COST & PRODUCTION FUNCTIONS
In order to reduce unit cost, the CEO of ABC Corporation has to decide whether to increase or decrease total production. A marketing analyst has reported the following information about ABC Corporation’s cost and production structure:
Year |
Total Cost (TC) ($1000) |
Quantity Produced (Q) (Unit) |
2018 |
2 |
10 |
2019 |
4 |
15 |
2020 |
6 |
35 |
1.Use Ordinary Least Squares Method (OLS) to estimate the ABC Corporation’s total cost function; that is, TC =β +βQ;
2. What is ABC Co’s marginal cost?
3. What is ABC Co’s fixed cost?
4. Calculate the scale elasticity at the mean of the data
5. In order to reduce the unit cost would you recommend an increase or a decrease in total production? Why?
In: Economics
What national conditions contribute to the success of economic integration? Please explain
In: Economics
In: Economics
Matters of health policy will be debated for as long as there is health for as long as there is policy. Many of these debates will revolve around cost – the cost of care, who we provide it to, how we allocate it, what opportunity costs we accept, and what resources we utilize. What policy areas do you think we, as a society, need to turn our attention to? How would we do it? What would we need to sacrifice in order to achieve it? Who would need to be involved?
In: Economics
In: Economics
Annette Robinson is a sixty-three-year-old recent widow. Annette is attempting to do some tax and investment planning pertaining to her late husband’s traditional IRA account. She is seeking your advice as to the best course of action. She has informed you that her husband was sixty-nine at the time of his death and had not started taking a RMD.
a.What are the three distribution methods available to Annette?
b.Which method should she choose to maximize tax deferral? Based on the appropriate life expectancy table, how much will her first required distribution be? When will this distribution happen?
c.Which method should she choose to maximize the distribution? Based on the appropriate life expectancy table, how much will her first required distribution be? When would this distribution happen?
d.Which alternative would not have been available had her husband begun his required distributions?
e.If Annette had been younger than age fifty-nine, which alternative would have allowed her to take distributions without incurring a tax penalty?
In: Economics
Please no plagiarism and must be your own work
Describe the financial organizations (Banks/Investment) and the considerations that will influence information security
Define and describe the associated information security policies in a financial organization (e.g. Acceptable Use Policy, Remote Access Policy, Employee Training Policy)
Define and describe the security processes that will be used to implement and enforce this security policy in a financial organization (e.g. Incident Response Process, Risk Assessment Process)
Define and describe the standards that are relevant and will govern the implementation of information security within the financial organization (e.g. NIST, HIPPA).
In: Economics
(a) Let x1 and x2 be normal goods. Graphically, represent the effect of an increase in the price level of x2. Show the Slutsky substitution and income effects on a clearly labelled diagram. (b) On a separate graph, show what would happen if x2 is now a Giffen good. Show the (Slutsky) substitution and income effects clearly and explain which effect outweighs the other. Note: For both parts x1 should be on the x-axis Assume the utility function to be a cobb Douglas function. Please note that you need to draw indifference curves to represent the optimal bundles.
In: Economics
In a closed economy with a government, if Saving is greater than Investment then,
Question 41 options:
consumpton must be less than saving |
|
saving must be less than consumption |
|
the government must be running a budget surplus |
|
the government must be running a budget deficit |
As the public becomes nervous about the viability of many borowers, the Fed can alleviated some of the panic by:
Question 43 options:
selling bonds to the public |
|
buying bonds from the public |
|
cuttng the money suppoy and raising interest rates |
|
spending on infrastructure |
If the marginal propensity to consoume is .60 then,
Question 44 options:
the marginal propensity to save is .40 and the multiplier is 1.67 |
|
the marginal propensity to save is .40 and the multiplier is 2.5 |
|
the marginal propensity to save is 2.5 and the multiplier is 4.0 |
|
the marginal propensity to save is 1.67 and the multiplier is 4.0 |
A law requiring an annually balanced federal budget would tend to:
Question 45 options:
create inflation |
|
make recessions worse |
|
magnify the multiplier effect |
|
stabilize the economy |
In: Economics
(a) Haris spends all of his income on apples and oranges. He thinks that apples and oranges are perfect substitutes; one apple is just as good as one orange. Apples cost $4 a unit and oranges cost $5 a unit. His income is given by $120 per month. If the price of apples increases to $6 a unit, calculate the (i) Slutsky substitution (ii) Income and (iii) the total effect of a price decrease on the consumption of apples. (b) Now assume that he thinks apples and oranges are perfect complements. Apples cost $4 a unit and oranges cost $5 a unit. His income is given by $120 per month. If the price of apples decreases to $3 a unit, calculate the (i) Slutsky substitution (ii) Income and (iii) the total effect of a price decrease on the consumption of apples.
In: Economics
Suppose that changes in nominal interest rate have a negligible effect on velocity of money. Then, if risk premium of a country increases, what happens to consumption, investment and net exports in short run? How does price level change from short run to new long run? Explain.
In: Economics
The following are costs incurred by a shoe manufacturer. Determine and explain whether each one is a fixed cost or a variable cost or has some element of both.
(a) The cost of leather.
(b) The fee paid to an advertising agency.
(c) Wear and tear on machinery.
(e) Electricity for heating and lighting.
(f) Electricity for running the machines. (
g) Basic minimum wages agreed with the union.
(h) Overtime pay.
In: Economics
Assume that there are only two countries in the world: USA and Brazil, so all international transactions are only between those two countries. The table gives the information regarding international transactions of USA in 2018:
ITEM |
Billions of US Dollars |
Imports of goods from Brazil |
185 |
Imports of services from Brazil |
120 |
Foreign direct investment by Brazil to the USA |
14 |
Exports of goods to Brazil |
238 |
Exports of services to Brazil |
155 |
US investment to Brazil |
110 |
Income received from Brazilians |
12 |
Income paid to Brazilians |
6 |
Net unilateral transfers between USA and Brazil |
5 |
Balancing item |
-3 |
In: Economics