At the end of 2008, the United States Federal Reserve and Treasury Department announced programs to purchase various assets, such as mortgage-backed securities or even commercial bills, from banks. Briefly explain how such actions will affect the money supply. (Please provide the definition of M1 and explain if the above action will directly affect M1.)

2. Suppose that the annual interest rate is 2.0 percent in the United States and 4 percent in Germany, and that the spot exchange rate is $1.60/€ and the forward exchange rate, with one-year maturity, is $1.58/€. Assume that an arbitrager can borrow up to $1,000,000 or €625,000

a. Determine whether the interest rate parity is currently holding.

b. If the IRP is not holding, how would you carry out covered interest arbitrage? Show all the steps and determine the arbitrage profit.

A. $238.65 B. $14,000 C. $46,207 D. $7,000

Circle the correct answer above and provide the workings to the answer above here:

c. Explain how the IRP will be restored as a result of covered arbitrage activities.

Question 253.125 pts

What was the first (and arguably most important) act of antitrust litigation in the United States?

Flag this Question

Question 263.125 pts

You are evaluating the possible merger of Honda and Philip Morris. What kind of merger is this?

Flag this Question

Question 273.125 pts

  When deregulation was initially being discussed, what was one of the most serious concerns raised for electric companies?

Flag this Question

Question 283.125 pts

Suppose there are 6 firms in an entire industry. Their market shares are as follows:

Firm 1: 20%

Firm 2: 10%

Firm 3: 30%

Firm 4: 5%

Firm 5: 17%

Firm 6: 18%

What is the 4-firm ratio and the HHI for this industry?

Birth certificates show that approximately 9% of all births in the United States are to teen mothers (ages 15 to 19), 24% to young-adult mothers (age 20 to 24), and the remaining 67% to adult mothers (age 25 to 44). An extensive survey of live births examined pregnancy type, defining an unintended pregnancy as one that was unwanted or mistimed by at least two years. The survey found that “only 23% of births to teen mothers are intended, and 77% are unintended. Among births to young-adult women age 20–24, 50% are intended, and at ages 25–44, 75% are intended.

Use your tree diagram and Bayes’s theorem to find the probability that a birth was to a teen mother if we know that the pregnancy was unintended.

The distribution of blood types in the United States according to the “ABO classification” is O:45%, A:40%, B:11%, and AB:4%. Blood is also classified according to Rh type, which can be negative or positive and is independent of the ABO type (the corresponding genes are located on different chromosomes). In the U.S. population, about 84% are Rh positive.

Sample two individuals at random and find the probability that:

(a) both are A negative

(b) one of them is O and Rh positive, while the other is not

(c) at least one of them is O positive

(d) one is Rh positive and the other is not AB

(e) they have the same ABO type

(f) they have the same ABO type and different Rh types

This data table lists the most common types of cancer in the United States, and includes information on the known or likely carcinogens, estimated cases per year, and estimated deaths per year in 2014.

Use the data table and your knowledge of cancer to identify which statements are true.

Select all that apply.

Specific factor model: Suppose that there are two sectors in the United States: the food sector, with land as the specific factor, the manufacturing sector, and capital as the specific element. Labor can flow between departments.

1. Suppose a good weather makes several states have a big harvest, which leads to an 8% drop in food prices. Please elaborate and analyze the changes of labor mobility, nominal income and actual income of labor force and factor owners (please show graph).

2. Suppose a typhoon destroys a lot of farmland in Jamaica, so that the land resources in Jamaica are temporarily reduced. And land is a very important specific factor in food production. Jamaica's food and manufactured goods production will be affected by this change.

Please analyze the changes of labor flow, nominal income and actual income of labor force and factor owners in detail and show graph（Assume price do not change）.

According to a recent study annual per capita consumption of milk in the United States is 21.5 gallons. Being from the Midwest, you believe milk consumption is higher there and wish to test your hypothesis. A sample of 14 individuals from the Midwestern town of Webster City was selected and then each person's milk consumption below.

Gallons of Milk

27.1

23.84

25.25

21

17.52

19.61

19.83

26.18

34.97

29.9

28.59

20.57

26.94

27.24

Develop a hypothesis test that can be used to determine whether the mean annual consumption in Webster City is higher than the national mean.

H₀: ? _________

H_a: ? _________

What is a point estimate of the difference between mean annual consumption in Webster City and the national mean? ____________(2 decimals)

At ? = 0.01, test for a significant difference by completing the following.

Calculate the value of the test statistic ________________(2 decimals).

The p-value is ____________ (4 decimals)

Reject the null hypothesis? No or Yes

What is your conclusion?

There is insufficient evidence to conclude that the population mean consumption of milk in Webster City is greater than the hypothesized mean.

or

Conclude the population mean consumption of milk in Webster City is greater than the hypothesized mean.