As technology rapidly progresses, the issue with artificial intelligence overwhelms us with many questions. Proponents believe it is the solution to society's most complex challenges but critics argue that it threatens to fundamentally alter the human way of life in such a way that poses an "existential threat" to mankind. In the TED Talk, Sam Harris does bring up the potential danger of AI acting independently of our control and may acquire the ability to refine themselves. To deal with this situation is tricky because there is always the doubts of the unknown and the fear to conquer them. In my personal opinion, there is no definite possibility or impossibility. AI could have the tendency to overpower the human race. For a fact, they are the manifestation of society's intelligence and innovation. In the essence, what is the nature of humanity versus the nature of AI? In many ways, we as humans are superior to artificial machinery. For example, we have the ability to learn from past experiences, adapt to new circumstances and change our own environments based on our accumulated knowledge. AI, on the other hand, is simply a tool of study and design that produces actions to maximize our success. In the essence, AI is being programmed to mimic human behavior while human intelligence is the real creator of artificial intelligence.   

It is true that in some aspects AI can outsmart human intelligence but our fear of the unknown should not be an excuse to prevent the next wave of technological and human progression. In the similar way that we utilize eco-friendly resources for the benefit of the society, we can manage to employ the adequate precautions and regulations necessary to create human- friendly AI that could be developed to serve humans rather than threaten them. In the bottom line, we need to be careful about the decisions we make and prepare for the consequences of our own actions. Always be better safe than sorry.

2. Other than the four sectors in a closed society, what is the fifth sector for an open society?

3. A typical security in the money market is a. corporate stock b. corporate bond c. corporate commercial paper d. corporate mortgage

4. Explain who loses when the dollar strengthens:

5. Provide a general historic description of the predominant source and use of funds for thrifts.

6. Provide a general historic description of the predominant source and use of funds for pension plans.

7. Explain why/how contributions to mutual funds are often considered riskier than contributions to pension funds.

8. How do the customers of a finance company differ from the customers of banks generally?

Which accounts are closed at the end of an accounting period?

Select one:

a. Neither Interest Expense nor Paid-in-Capital from Stock Warrants

b. Both Interest Expense and Paid-in-Capital from Stock Warrants

c. Interest Expense, but not Paid-in-Capital from Stock Warrants

d. Paid-in-Capital from Stock Warrants, but not Interest Expense

An Economic Model of National Income in a Closed Private Economy in the Short Run

(We are assuming for this model that there is no trade, no government, and no business saving.)

C = 280 + 0.80*Y        Consumption Function [$Billion/year]

I = 620                         Planned Investment (Purchase of new capital goods and services) [$Billion/year]

Y                                 National Income [$Billion/year]

Part 1. What is the aggregate expenditure function in this model?

Part 2. Suppose firms expect to sell, and produce, 4725 $B worth of goods and services. There would be an unplanned change to inventories. What is the size of this unplanned change and how would you predict that firms would respond to this unplanned change in inventories?

Part 3. What are the equilibrium levels of GDP, Consumption, and Savings in this model?

Part 4. Find the value of the expenditure multiplier in this economy.

Part 5. If investment increases from 620 to 660, find the new equilibrium level of GDP.

Consider a closed economy described by the following:

Y = 2,000

G = 700

T = 500

C = 100 + 0.6(Y – T)

I = 750 – 50r

a.       Find consumption.

b.       Find the equilibrium interest rate.

c. Find investment.

d. Find private saving, public saving, and national saving.

Suppose in a closed economy, the government lowers taxes by 100 billion. If the marginal propensity to consume is 0.8 and the government purchases remain unchanged, what happens to the following? That is, do they rise or fall? By how much?

a.       Public saving.

b.       Disposable income.

c.       Household consumption.

d.       Private saving.

e.       National saving.

f.        Investment.

The following table contains data for a hypothetical closed economy that uses the dollar as its currency.

Suppose GDP in this country is $925 million. Enter the amount for consumption.

Fill the blank above for Consumption(CC)

Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.

Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table.

Based on your calculations, the government is running a budget .......................... .

The following table contains data for a hypothetical closed economy that uses the dollar as its currency.

Suppose GDP in this country is $1,680 million. Enter the amount for consumption.

Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.

Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table.

Based on your calculations, the government is running a budget

Consider the long-run model of a closed economy with a marginal propensity to consume of 0.8.
Suppose the government cuts taxes by $100 billion while holding government purchases constant. What
happens to the following variables? Explain and calculate the amount of change for each variable.
a. Public saving (Sg):
b. Private saving (Sp):
c. National Saving (S):
d. Investment (I)