User Account

All Pages

Compute the rate of growth in real consumption

Assignment Help Microeconomics
Reference no: EM131737296

Question: Suppose that the Federal funds rate rose from 3% to 6% during the year. What would you expect to happen to the rate of growth in real consumption, and in the consumption/income ratio, under the following circumstances?

(A) The corporate bond rate rose from 6% to 9%.

(B) The corporate bond rate remained unchanged at 6%.

(C) The stock market declined 20%.

(D) The stock market was unchanged.

(E) The unemployment rate rose from 5% to 6%.

(F) The unemployment rate was unchanged.

Reference no: EM131737296

Questions Cloud

Calculate the price of drug store stocks : Suppose the government decided to levy the current 15.3% social security tax on all levels of wages and salaries, not just the first $80,000.
How do you feel about the future of juvenile courts : Are you more crime control or due process oriented? How do you feel about the future of juvenile courts, considering your orientation?
What would the year 3 monthly payment be : Assume that on the reset date, the composite rate (i.e., the market index plus the margin) is 5%. What would the Year 3 monthly payment be?
What is the effect of the revaluation adjustment : What is the effect of the revaluation adjustment on the 12/31/17 Accumulated Depreciation account and the 12/31/17 Total Stockholders Equity
Compute the rate of growth in real consumption : Suppose that the Federal funds rate rose from 3% to 6% during the year. What would you expect to happen to the rate of growth in real consumption.
Watch the media supplement and answer the question : Which type of program is representative of the video you selected? Please describe how and why.
How the inclusion of the fixed income securities affect risk : You are bullish on the markets in the long-term. Discuss the how the inclusion of the fixed income securities affects the risk in your total portfolio.
Develop a strategy to deal with team emotions : Explain three generational issues that could impact a team and create a plan to deal with each situation - Evaluate three multi-cultural issues
What factors accounted for the divergence : During the 1990s, the age cohort that grew the most rapidly was the 45-54 cohort, which has the highest saving rate.

Reviews

Write a Review

Microeconomics Questions & Answers

  Monopolistic competition is similar to perfect competition

Monopolistic competition is similar to perfect competition because:

  Presume, in an effort to increase tax revenue

Presume, in an effort to increase tax revenue, the federal government imposes a 25 percent tax on cheques written on deposits. Describe thoroughly utilizing the money multiplier how the cheque tax will affect the money supply.

  What trends suggest this may be changing in the near future

Information Technology (IT) has been around for a long time but most health care organizations have not embraced information technology as much as most other industries. Discuss this issue as it relates to your organization. Given the material in..

  How many doses of the drug to produce

A pharmaceutical company has hired you to perform an economic analysis on a currently ongoing project. Experts from the company have estimated the market for the drug and thus the potential revenues for the drug are knows, but the relevant costs a..

  What happens to the price elasticity of demand

What happens to the price elasticity of demand? ______ On a particular night, you have a big name headliner. It's a once-in-a-lifetime opportunity to see this big a name in your town.

  Contradict the law of downward-sloping demand

College enrollments increased at the same time that average tuition rose dramatically. Does this contradict the law of downward-sloping demand?

  Is the policy likely to create a moral hazard problem

Faced with a reputation for producing automobiles with poor repair records, a number of American companies have offered extensive guarantees to car purchasers. In light of your knowledge of the lemons market, why is this a reasonable policy?

  Are the nfl and its members a single entity

Are the NFL and its members a single entity for the purposes of antitrust laws - Is the agreement of NFL teams with Reebok subject to Section 1 of the Sherman Antitrust Act, when teams own and control the use of their separate logos and trademarks

  What is the level of profit maximising output

Using the marginal approach to maximise profits, find the price that monopolist would charge to maximise its profit. What is the level of profit maximising output?

  Comparing the size of economies to the gdp of the us

What specific standard is applied to a firm whose only contact with a forum state is through its Internet site? If you had an eBusiness, what could you do in order to limit your liability to suit in multiple jurisdictions?

  Real deficit change problem

Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. If the expected inflation rate falls from 20 percent to 15 percent, by how much does the real deficit change?

  Whether fiscal policy and conventional monetary policy

Show a liquidity trap equilibrium in an IS-LM diagram and an AS-AD diagram. Give an explanation for the slopes and positions of the curves in the diagram. Explain whether fiscal policy and conventional monetary policy can solve the liquidity trap pro..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd