This week's material focuses on the horrific period of the Great Depression. This era led to significant changes within the United States as both government roles and individual relationships with the government vastly changed.

1. How did the role of the executive change during this period? Why did it change?
2. How did different individuals react to the Great Depression? Why was the response so varied?

Primary Sources:/Huey Long sources -
1. What does Long argue is wrong with the current plan of the government?
2. What does he suggest as an alternative?
3. How might Americans react to this idea? Would all agree?

a. What are the 3 functions of money? b. The one-dollar-bill in your pocket/purse is a fiat money. Why? c. List the 2 ways of measuring the money supply of the United States. In addition, list the components of each measurement of money supply. d. True or False : Of the 2 measurements of money supply, M1 is broader. (If you answer false, you must provide a corrected statement.) e. What is another term for time deposits? f. Fill in the Blank: Fifth Third Bank borrowed money from the Federal Reserve Bank of Cleveland. The interest rate charged by the Federal Reserve Bank is called _______________.

Airbus sold an A400 aircraft to Delta Airlines, a U.S. company, and billed $30 million pay- able in six months. Airbus is concerned about the euro proceeds from international sales and would like to control exchange risk. The current spot exchange rate is $1.05/€ and the six-month forward exchange rate is $1.10/€. Airbus can buy a six-month put option on U.S. dollars with a strike price of €0.95/$ for a premium of €0.02 per U.S. dollar. Currently, six- month interest rate is 2.5 percent in the euro zone and 3.0 percent in the United States.

1. Should a firm hedge? Why or why not?

19. Matching: Place the number below next to the corresponding business entity being described:

ECI _____

FDAP ______

FIRPTA _____

Portfolio Interest_____

Branch Profits Tax _____

1. Exception from FDAP withholding on interest income from certain portfolio debt investments.

2. 30% withholding tax on passive-type income (interest, dividends, etc..).

3. 30% tax imposed on a foreign corporation based on a deemed distribution of US branch operations.

4. Imposed on 1980 by the Foreign Investment in Real Property Tax Act.

5. A withholding tax on income that is effectively connected with a United States trade or business.

Consider the continuous uniform distribution.

a. Why would you use this to model the distribution of ages of people between the ages of 0 and 50 years in the United States?

b. Why would this likely not be a good distribution to use beyond about 50 years of age?

c. Is this distribution characterized as a PMF or PDF? Explain.

d. What is the mean age? Show your calculation.

e. What is the standard deviation? Show your calculation.

f. What is the probability that a person will be exactly 30 years of age? Explain your answer.

g. What is the probability that a person will be between ages 30 and 31? Show your calculation.

"The 80s, 'Reaganomics', and the Internet" Please respond to the following: (Note: Please respond to one [1] of the following two [2] bulleted items in a primary posting of at least 125 words. In addition, please make a substantive comment to one [1] of your classmates.)

Ronald Reagan drove the United States deeply into debt in the two terms he was president. What did he spend the money on and why? Give three examples.

OR

ARPANET became the Internet and we created the World Wide Web during the 1980's. How did life change for US citizens during the 1980's as a result? Give three examples.

• A firm preparing to introduce a new deodorant has learned that more competitors are offering products formulated for women than men. This finding most likely emerged during the ________ step of the firm’s STP process.

• three-day pass to Disney World in the United States costs $169 per day, or $99 per day for a five-day pass. Which of the following price customization tool is Disney using?

Imagine that fully aware of the challenges to traditional modes of economic commerce presented

by the COVID-19 virus and the ramping up of the inevitable political competition between the United States

and China that currently threatens any previous cooperation between the two largest economies in the world

you have created a strategy that includes the total exclusion of any production dependence on China by switching

all to automated U.S. factories, low cost competitors to China (India, Indonesia, Mexico, etc.) you now need

to implement this strategy in a way that excites both your workforce and your shareholders. Additionally, you

want to lower costs and gain market share.