Questions
If the initial cash in the US economy is $1 Trillion, individuals tend to keep onesixth...

If the initial cash in the US economy is $1 Trillion, individuals tend to keep onesixth
of their income as cash and deposit the rest, and banks can lend 90 percent
of the deposit and reserve the remaining, then:
a) What is the total money supply (M1) in this economy? (5 points)


b) If the Federal Reserve wants to expand the money supply by five percent (because
of the current crisis), what types of policies can she use, and how? Explain and
support your claim using computation if it is required. (10 points)


c) Let’s say, after implementing these policies, the economy only increased by two
percent, explain why this happened. (5 points)


d) Now the government wants to stimulate the economy by ten more percent after
the failure of the previous attempt by the Fed (the size of the economy is $20
trillion, and it is predicted that it will be contracted by at least $2 trillion by the
end of this year), what can she do? Explain the possible policies that the Gov can
implement in detail, and use computation if necessary. (10 points)

In: Economics

Outline strategies on how the firm should respond to the changes in the economic indicators with...

Outline strategies on how the firm should respond to the changes in the economic indicators with the goal of maximizing revenues in the years ahead. How have they done in the past? What is their current state? What kinds of plans and possibilities do they have for the future? Is there room for improving what they do? Should new ventures be added or old ones subtracted? Then, discuss the firm’s global operations, and their influences on the regional and national levels. You also need to assess the value of multiculturalism and diversity in operating (managing) a company in a global environment.....my company chosen is Walmart

In: Economics

Required Words: 1000 An organization faces several internal and external risks in economic decision, such as...

Required Words: 1000

An organization faces several internal and external risks in economic decision, such as high competition, failure of technology, labor unrest, inflation, recession, and change in government laws.Therefore, most of the business decisions of an organization are made under the conditions of risk and uncertainty.An organization can lessen the adverse effects of risks by determining the demand or sales prospects for its products and services in future. Demand forecasting is a systematic process that involves anticipating the demand for the product and services of an organization in future under a set of uncontrollable and competitive forces.

Question 01: In your opinion, explain with examples how Economic Decision analysis is important in Demand Forecasting and cost (Required Words 1000)

.

Note: Please no copy paste from internet plagiarism is strictly prohibited

In: Economics

please read the scenario this is all I got that is provided by my professor If...

please read the scenario this is all I got that is provided by my professor

If the initial cash in the US economy is $1 Trillion, individuals tend to keep one-sixth of their income as cash and deposit the rest, and banks can lend 90 percent of the deposit and reserve the remaining, then:

a) What is the total money supply (M1) in this economy? (5 points)

b) If the Federal Reserve wants to expand the money supply by five percent (because of the current crisis), what types of policies can she use, and how? Explain and support your claim using computation if it is required. (10 points)

c) Let’s say, after implementing these policies, the economy only increased by two percent, explain why this happened. (5 points)

d) Now the government wants to stimulate the economy by ten more percent after the failure of the previous attempt by the Fed (the size of the economy is $20 trillion, and it is predicted that it will be contacted by at least $2 trillion by the end of this year), what can she do? Explain the possible policies that the Gov can implement in detail, and use computation if necessary. (10 points)

In: Economics

This week we explored the various theories of FDI and discussed how political ideology has shaped...

This week we explored the various theories of FDI and discussed how political ideology has shaped these attitudes. With that said, please identify a cost and a benefit of FDI from the perspective of a home country. When answering this question, select any home country of your choice excluding the United States.

In: Economics

Explain how inflation can redistribute income. Why does an unexpected rise in the inflation rate make...

Explain how inflation can redistribute income. Why does an unexpected rise in the inflation rate make workers and lenders worse off? Who is made better off? Why does correctly anticipated inflation does not have these distributional effects

In: Economics

Since the financial crisis of 2008, the world economy has grown steadily until March of this...

  1. Since the financial crisis of 2008, the world economy has grown steadily until March of this year. I began this semester by noting that we were in an era of unprecedented prosperity, even though we faced serious problems of economic inequality and global warming. We are now in what I would call a policy-induced global depression causing negative growth and rising unemployment. The ten years of growth were also associated with increased globalization which began to reverse before this crisis with the election of Donald Trump and the United Kingdom’s decision to leave the European Union.

  1. In one paragraph, explain why do many economists associate globalization with increased economic growth, especially in poorer countries?

  1. Has the global pandemic permanently hurt globalization (global trade, investment, and the movement of people across national borders)? Explain your answer in one paragraph.

  1. Use economic concepts (such as comparative advantage, rates of investment, and technological change) to explain whether or not you think economic growth will rebound after this crisis has passed. One paragraph only.

In: Economics

Imagine that you are the CEO of a wind power company, and you operate under the...

Imagine that you are the CEO of a wind power company, and you operate under the theory of sustainability. You have been asked to give a presentation to your management team about the advantages of environmental leadership. How will you explain these motivations in the context of your company and your philosophy?

In: Economics

Explain how inflation can redistribute income. Why does an unexpected rise in the inflation rate make...

Explain how inflation can redistribute income. Why does an unexpected rise in the inflation rate make workers and lenders worse off? Who is made better off? Why does correctly anticipated inflation does not have these distributional effects?

In: Economics

a.) Moldavia, an open economy currently in long-run macroeconomic equilibrium, has become concerned about its debt...

a.) Moldavia, an open economy currently in long-run macroeconomic equilibrium, has become concerned about its debt levels and the effects those levels might have on its international financial position. The Moldavian parliament decides to implement austerity measures to bring those debt levels down. Suppose the country cuts government spending to reduce its deficit, and this policy reduces the risk premium on Moldavian assets. Economists also note that in the new long-run equilibrium, the quantity of national savings stays the same. Construct a well-labeled, three-panel diagram (the "trifecta") to analyze the impacts of this policy on the Moldavian economy. The supply curve for loanable funds in Moldavia is upward-sloping; the demand curve for loanable funds in Moldavia is downward-sloping. Specifically, what happens to the following variables in Moldavia as a result of this policy: *The real interest rate *The real exchange rate *The quantity of net exports *The quantity of domestic investment

(i) The fall in the risk premium on Moldavian assets ______ foreigners' demand for Moldavian assets (including Moldavian government bonds), thus ______ bond prices.

A. Decreases ; increasing

B. Increases ; increasing

C. Increases ; decreasing

D. Decreases ; decreasing

In: Economics

a.) Moldavia, an open economy currently in long-run macroeconomic equilibrium, has become concerned about its debt...

a.) Moldavia, an open economy currently in long-run macroeconomic equilibrium, has become concerned about its debt levels and the effects those levels might have on its international financial position. The Moldavian parliament decides to implement austerity measures to bring those debt levels down.


Suppose the country cuts government spending to reduce its deficit, and this policy reduces the risk premium on Moldavian assets. Economists also note that in the new long-run equilibrium, the quantity of national savings stays the same.  

Construct a well-labeled, three-panel diagram (the "trifecta") to analyze the impacts of this policy on the Moldavian economy. The supply curve for loanable funds in Moldavia is upward-sloping; the demand curve for loanable funds in Moldavia is downward-sloping.

Specifically, what happens to the following variables in Moldavia as a result of this policy:


*The real interest rate
*The real exchange rate
*The quantity of net exports
*The quantity of domestic investment

(iii) From your results in (a) above, investment in Moldavia _____ , thus _______ the growth rate of real GDP ( Y ) in Moldavia.

A. Increases ; lowering

B. Increases ; raising

C. Decreases ; lowering

D. Decreases ; raising

In: Economics

Accounting Information Systems Data Analysis Honors Business Law Supply Chain Management Taxation of Entities Taxation of...

  • Accounting Information Systems
  • Data Analysis
  • Honors Business Law
  • Supply Chain Management
  • Taxation of Entities
  • Taxation of Individuals

In: Economics

2. A Survey of 500 women revealed 40% wear flats to work. Use the sample information...

2. A Survey of 500 women revealed 40% wear flats to work.

Use the sample information to develop a 99% confidence interval estimate for the Population proportion of women who wear flats to work.

Suppose we wish to estimate the proportion of women who wear atheletic shoes to work with a margin of error of ± 0.05 at 98% confidence , determine the sample size required.

In: Economics

You are an economic advisor in a developing country with a fixed exchange rate. While your...

You are an economic advisor in a developing country with a fixed exchange rate. While your country has an open capital account, your financial markets remain imperfectly integrated with those of the rest of the world. The central bank in your country targets the stock of domestic credit. One day, an IMF team arrives and convinces the Finance Minister that your country’s fiscal deficit is excessive. The Finance Minister persuades the parliament to pass a tax increase to reduce the deficit. Explain what effect you would expect this measure to have on:

a. The aggregate price level and level of real GDP.

b. The level of employment and the real wage

c. The level of exports, of imports, and of net exports

In: Economics

Romeo lives two periods, and he earns m1 =$10,000 in period 1 and m2 =$12,000 in...

Romeo lives two periods, and he earns m1 =$10,000 in period 1 and

m2 =$12,000 in period 2, respectively. His utility function is u(c1; c2) = c1*c2.

Answer the following questions.

(a) Suppose that market interest rate is 50% (r = 0:5). Write down

Romeo‘s budget constraint. How much does he save or borrow in period 1?

Calculate. Explain your answer. Draw a diagram, too.

(b) The interest rate goes down from 50% to 25%. What happens his

saving or borrowing? Calculate. Draw a precise diagram. Is this change good

news or bad news?

(c) Now, the interest rate further goes down from 25% to 0%. What

happens his saving or borrowing? Calculate. Draw a precise diagram. Is

this change good news or bad news? Do you notice something interesting?

In: Economics