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Since it takes time for monetary or fiscal policy to have an impact, is it faster to do nothing?
Using the policies together to "fix" the economy makes sense, but would require careful coordination to avoid "overdoing" it. And there are times when using them together could be disastrous; as right now. The Administration's tax cuts are strongly expansionary, so the Fed is watching carefully for signs of imminent inflation so they can start contractionary monetary policy to keep the economy under control . And if anyone knows someone who's crystal ball can accurately predict significant economic events, please get them to work, fast!
In the meantime, what alternatives do we have to the monetary and fiscal policy concepts in terms of avoiding or correcting economic disasters?
You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. How much can we e..
Find the average daily balance for the following credit card account. Assume one month between billing dates using the proper number of days in the month. Then find the finance charge is interest is 1.5% per month on the average daily balance. Finall..
How many miles is this over the 2 weeks? (Answer: 111 miles per day)
When he took over the furniture factory three years ago [the manager] realized almost immediately that it was throwing away at least $100,000 a year worth of wood scrap.
The balance sheet below represents the current financial situation of a commercial bank named Novatia Bank. What will happen to the bank's assets after the $150 deposit? What will happen to the bank\'s liabilities after the $150 deposit.
Consider a closed economy. Assume that goods prices are fixed in the short-run and that firms produce whatever they need to meet demand. Assume that money demand is negatively related to the nominal interest rate and positively related to the level o..
q. 1. when discussing the maximization of utility regardless of whether you chose to work more hours or fewer when
Appledale Dairy is considering upgrading an old ice-cream maker. Upgrading is available at two levels: moderate and extensive. Moderate upgrading costs $6500 now and yields annual savings of $3300 in the first year, $3000 in the second year, $2700 in..
Assume that the airline industry is characterized as a duopoly in which two firms produce identical products. American Airlines’s marginal cost of is $90.00, while United’s marginal cost is $180.00. If the two firms compete by choosing quantities sim..
What were some "lessons about society" you learned at school (lessons that were not part of the formal curriculum but, rather, lessons about behaviors or attitudes you needed to take on). How were these lessons taught and enforced.
Why is it important that prices are flexible in the economy? Do you think government should be involved in manipulating prices?
Suppose Fred and Barney have different time discount rates. There are two periods of life: “young”, and “old”. Fred’s present value of receiving a dollar next period is given by $1/(1+r), r=0.5 whereas Barney’s value for r is 0.02. Fred and Barney ar..
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