Questions
Here, you will state whether you agree or disagree with fiscal and monetary policy actions taken....

Here, you will state whether you agree or disagree with fiscal and monetary policy actions taken.

•It is possible that some actions you agree with and other you disagree with - that is fine. You can discuss your reasons for disagreement or agreement on a case-by-case basis.

•In your argument, be sure you are using our economic models and concepts to support you and not just your own opinion or feeling about what is best. For instance, saying that we should not have spent money on government programs because it's not fair to give out money to people would not be an macroeconomics-based reason. You could say that increased government spending through expansionary fiscal policy created too much inflation later on and so you disagree with that action.

In: Economics

Data of a perfect competition market for good X is given by the following supply and...

Data of a perfect competition market for good X is given by the following supply and
demand equation:
(D) : P = -1/2*Q + 600
(S): P = 1/2*Q + 350
The world price; Pw = 450$
Assume that the country is small and there is free trade.
a. Calculate the imported amount of good X, domestic quantity supplied and quantity
demanded at the world price.
b. Now the government imposes a tax of t = 10$/ imported unit, identify the effect of
tariff on the importing country in terms of: domestic production, domestic demand,
domestic price.
c. Calculate the Deadweight Loss caused by the tariff policy.
d. Explain why even the tariff policy causes a Deadweight Loss to the society, many
developing countries still use it.
e. If the Vietnamese government increases its tariff on the imported rice from Thailand
and Japan, what will be its effects on the market for rice in Vietnam?

In: Economics

How can trade between EU members affect unemployment? How could labour mobility have alleviated the unemployment...

How can trade between EU members affect unemployment? How could labour mobility have alleviated the unemployment differential in early 1990's? d) Do we observe labour mobility in reality? How does this relate to the theory of optimum currency areas?

In: Economics

Consider the Keynesian model, which is based on examining the expenditure side of the economy (AE...

Consider the Keynesian model, which is based on examining the expenditure side of the economy (AE = C + I + G + X – M)!

Please, formulate 3 different macroeconomic policies in the context of this model that could potentially have a positive multiplier effect on the economy! Please, explain in 2-3 sentences, why would each of your proposed policies lead to a positive multiplier effect and what are the risks that could reduce the multiplier effect!

In: Economics

In a fixed exchange rate regime, an increase in the price level will cause which of...

In a fixed exchange rate regime, an increase in the price level will cause which of the following? Explanation please

A) a real appreciation and a leftward shift in the aggregate demand curve

B) a real appreciation and no shift in the aggregate demand curve

C) a real depreciation and a rightward shift in the aggregate demand curve

D) a real depreciation and no shift in the aggregate demand curve

E) no change in the real exchange rate, and no change in aggregate demand

In: Economics

4) list the main thrusts of the new Keynesians thought. 5) explain why formal and implicit...

4) list the main thrusts of the new Keynesians thought.

5) explain why formal and implicit contracts lead to and increase in unemployment according to new Keynesian school and how government should intervene actively through fiscal and monetary policies to counter this problem.

In: Economics

How cashless economy leads to mis-allocation of resources? example

How cashless economy leads to mis-allocation of resources? example

In: Economics

Suppose the Bank of Canada releases a policy statement today which leads people to believe that...

Suppose the Bank of Canada releases a policy statement today which leads people to believe that the Bank will be enacting expansionary monetary policy in the near future. Everything else held constant, the release of this statement would immediately cause the demand for Canadian assets to ________ and the Canadian dollar to ________.

A) increase; appreciate

B) decrease; appreciate

C) increase; depreciate

D) decrease; depreciate

In: Economics

Question: What are the main influences on the elasticity of demand that that makes the demand...

Question: What are the main influences on the elasticity of demand that that makes the demand for some goods elastic and demand for another goods inelastic? What are the main influences on the elasticity of supply that make the supply of goods elastic and the supply of other goods inelastic? Chapter 5

In: Economics

The Federal Reserve (or ‘Fed’) is the central bank in the USA, set up in 1913....

The Federal Reserve (or ‘Fed’) is the central bank in the USA, set up in 1913. Although it consists of 12 regional Federal Reserve Banks, it is the Federal Reserve Board in Washington that sets monetary policy and the Federal Open Market Committee (FOMC) that decides how to carry it out. In what ways is the Fed’s operation of monetary policy similar to and different from Bank Negara Malaysia?

In: Economics

Question: By explaining law of demand and law of supply show how prices of goods and...

Question: By explaining law of demand and law of supply show how prices of goods and services are determined in all types of market? What are those forces that move a market towards equilibrium? Why it is not advisable for any government of rely on price floor and price ceiling? chapters 4 and 6

In: Economics

"There is a strong historical correlation between the performance of the Saudi stock market, oil prices...

"There is a strong historical correlation between the performance of the Saudi stock market, oil prices and global financial markets."

1- Discuss in detail how accurate this link is?

2- What is your personal assessment of the financial market situation in the Kingdom?

In: Economics

Let’s say that a firm has given itself the ‘green light’ to build factory #5. What...

Let’s say that a firm has given itself the ‘green light’ to build factory #5.

What forces will determine whether this firm will OBTAIN FINANCING for the factory? (in class we discussed a sum of $100 million)

2. Why may some firms DELAY previously planned construction projects in the next year?

3. In theory, what forces may influence a firm to build factory #5 in a country outside the U.S.?

4. What forces may influence a firm to build factory #5 on U.S. soil?

5. List and discuss some of the GOVERNMENT REGULATIONS a firm must deal with if it builds and operates a factory on U.S. soil.

6. What is “infrastructure”, exactly? Please give five examples

. 7. What role does infrastructure play in a firm’s decision to build factory #5 in one particular country?

In: Economics

PLEASE GIVE ME LONG AND DETAILED ANSWERED (with specific examples) Prior to the current Covid-19 travel...

PLEASE GIVE ME LONG AND DETAILED ANSWERED (with specific examples)

Prior to the current Covid-19 travel advice the Department of Foreign Affairs and Trade (DFAT) Smart Traveller website had the following advice for Australians. “Venezuela has closed its land borders with Brazil and Colombia and maritime borders with Aruba, Curaçao and Bonaire until further notice. The political and economic situation remains very unstable. Monitor local media and follow the advice of authorities. We continue to advise you not to travel to Venezuela.”

(i) Assuming COVID-19 does not exist at this time what would your advice be to an Australian company that has just won a major and highly profitable project management contract? Please provide a sound rationale for your advice.

(ii) What other sources of political risk can an exporter face and how can they be counteracted? Please provide specific examples in support of your answer.

In: Economics

In what way might consumer protection regulations negatively affect a financial intermediary’s profits? Can you think...

In what way might consumer protection regulations negatively affect a financial intermediary’s profits? Can you think of a positive effect of such regulations on profits?

In: Economics