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 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 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 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 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 workers and lenders worse off? Who is made better off? Why does correctly anticipated inflation does not have these distributional effects
In: Economics
In: Economics
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 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 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
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
In: Economics
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 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 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