Is the insurance policy voidable under this situation? Explain
your answer.
Lightning struck a tree in the Gibson’s yard, causing it to fall
over and smash the bay window in their living room. The Gibsons
were so frightened that they decided to visit their neighbours to
calm themselves. When they returned home, they discovered that
someone had walked through their broken bay window and stolen many
of their valuable possessions. They have a homeowners policy.
Exchange Rate and Monetary Policy
Explain the Exchange rate determination under less-‐developed
Countries and
Is any link between the exchange rate floating and monetary
policy for emerging markets?
Two policies that can correct the situation are- Fiscal policy and
Monetary Policy.
(Fill
the following table showing
at-leasttwo
difference between the two.
You can tell more than two differences also.)
Difference
Fiscal Policy
Monetary Policy
1
2
Fiscal Policy:
There are
two types of Fiscal policies: Expansionary
fiscal policy and
contractionary
fiscal policy.
Key-Questions:
1.
Explain each of the key terms in not more than one or two sentences
(give formula or examples whichever is applicable):
(a) Expenditure multiplier...
Explain the most recent monetary policy move by the Fed. Is this
expansionary or contractionary policy? Why did the Fed choose to
pursue this policy? What impacts of this policy do you observe? For
best results, look up recent FOMC announcements.
This must be a real-life response regarding the United
States.
1. Using the Greenspan approach to monetary policy, answer the
following. Present intuitive explanations for (a) and (b).
Suppose Greenspan incorrectly forecasts the LRAS and SRAS to be
further out that actually occurred and that AD is insufficient to
reach long-run equilibrium. What are the implications for the price
level and the cyclical component of output for Greenspan’s policy?
b) Suppose Greenspan correctly forecasts
the future position of the LRAS but forecasts the SRAS to be
further in than actually...
1. Consider our most recent recession. Suggest an appropriate
monetary policy intervention to remedy the situation. Explain how
the Fed will carry out this intervention (suggest a specific tool
and how it can be used), and what the actions of the banking system
will (may) e after the Fed's intervention. How will this affect the
AD, what will be the effects on inflation and unemployment.
under what conditions is monetary policy most effective? a
liquidity trap
a steep LM and relatively flat IS
a steep IS and relatively flat LM
steep IS and LM
President Franklin D. Roosevelt enacted the New Deal in 1933.
What was this policy?
aggressive fiscal policy designed to provide relief, reform and
recovery from the Great Depression
An act to preserve the laissez-faire approach to government's
role in markets.
a policy designed to reduce competition from foreign
exporters
an offer...