The poor find it difficult to access the credit market. Discuss why, and make sure you touch on the following topics: asymmetric information, moral hazard, adverse selection, the lender’s problems, and how microfinance institutions are able to solve these. What does the recent evidence say about the impact of microfinance institutions on measures of household wellbeing?

Is geography destiny? Provide an extensive discussion using the pieces of evidence discussed in class that touched on the geography vs institutions debate. Be sure to articulate what the “geography hypothesis” is and relate it to the “institutions hypothesis”.

Amidst the affluence of post-industrial societies exist some unsettling paradoxes:

a. Rather than being dedicated to disease research or pursuit of environmentally friendly production techniques, the talents of many researchers are channeled toward making existing products distinct from each other. Is the level of product innovation excessive in market economies?

b. Further resources, including artistic talent, are devoted to advertising campaigns with the same seemingly wasteful objective of attracting customers from rival firms. Does free competition lead to the socially efficient level of advertising in market economies? Should public policy limit advertising and research?

. True or false, explain you answers.

1. Lenders sell bonds, and borrowers buy them.
2. An increase in reserve requirements raises the reserve ratio and decreases the money supply.
3. When the government runs a budget deficit, interest rates rise, and investment falls.

Joan uses some of her income to buy mutual fund shares. A macroeconomist would refer to Joan’s purchase as investment.

trace the impact of buying more bonds by government on bond prices, interest rate, investment, aggregate demand, real GDP, unemployment , and the price level.

BEGINNING WITH THE GREAT DEPRESSION, how has the government's role in American life changed over the period we have covered in this course? Give examples of how the government has become more involved in Americans? lives both in terms of foreign policy as well as in issues within the United States.

Question 3 Social entrepreneurship Explain, drawing on one actual case, how social entrepreneurs use business and entrepreneurial tools to solve social problems.

The United States has returned to a zero-interest rate policy in March 2020. Discuss the pros and cons of this policy. Should Australia opt for a zero-interest rate policy? Explain the answer

The US Boskin Commission Report of 1996 advocated downward adjustment of the Consumer Price Index. Explain the rationale underpinning this advocacy using examples from Australia.

Briefly how exchange rate are determined by supply of demand.

Explain how the government maintains the value of its currency fixed with a foreign currency through buying and selling of reserves.

Donald Trump official labeled China a "currency manipulator" in August 2019 (see the attached article from the New York Times). Based on what we have discussed with regard to the determination of exchange rates, what impact did this likely have in the market for Chinese Yuan (renmimbi)? Do you believe that these threats are effective at achieving the goal of a stronger Yuan? Explain.

Explain the relationship between monetary policy and the internal rate of return to bonds (what it is and how it works). Outline how monetary tightening impacts the internal rate of return to bonds.

Question 2

Analyse how the following events will affect South Korea’s economy using the AD-AS diagram. In response to the Covid-19 pandemic, President Moon announced a supplementary budget in April 2020 to increase government spending by KRW 8 trillion to fund an emergency relief program. At the same time, firms face an increase in the cost of production due to unavailability of materials. What would happen to the output and the price level in the short run and long run in South Korea? Diagram/s are required to aid your explanation.