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Assignment:
Is there a downside to low interest rates? Ever since the 2008 Financial Crisis, the central banks world-wide have been keeping interest rates very low. In this lecture, you will learn how interest rates were identified as being one of the factors that may change the AD curve. In a previous lecture, you learned lowering the interest rates by the Fed is one of the tools that may be used to stimulate the economy. Some economists have stated that interest rates are too low and have been so for far too long. As with many issues in economics there are two sides. For your initial post, answer the following and include at least one scholarly reference supporting your problems:
Describe two potential problems with low interest rates and relate the problems to economic growth, conflict with Fiscal Policy, and/or economic recovery.
You might want to compare your country with other countries (maybe with the World average). This will help you to understand whether the inflation or unemployment is too high, or growth is too low in your assigned country.
In other words,if we ask how much demand or supply changes in response to a changein price, we must be clear about how much time is allowed to passbefore measuring the changes in the quantity demanded or supplied.
The technology helps to grow productivity, which in turn frees up resources - permit interest rates to remain lower than otherwise possible. But i am not sure how increased productivity drives economic growth.
Obviously there is only so much that can be accomplished in an existing establishment before the owner reached the point of diminishing marginal returns, or where their output reaches a point where additional tables may cause crowding and profits ..
Econ 1311: Data Analysis Assignment. Consider the stated goal of the tax policy described. Using a demand and supply diagram, determine whether that motivation will be satisfied if Demand is perfectly inelastic
In our look at democracy and sovereignty, one of the things that we observed is that we are seeing a rise of subnational groups in countries around the world. How does one reconcile this apparent trend with the accusation that globalization is le..
Illustrate the extended form game of the two-period, two-firm game. Describe the second-period pricing for the case in which the first-period product is nondurable and durable. Identify the first period durability choice. Calculate the social-welfare..
Assume banks install ATM on every block and, through making cash readily available, decrease the value of money people want to hold.
Elucidate at what price also quantity will marginal revenue be zero. At what price and quantity will marginal revenue be maximized.
Define money and describe its functions. Is money a root of all evil? Why or why not? How are paper money (fiat) and commodity money different?
How would you defend the position that the Fed should adopt inflation targeting as a framework for monetary policy?
Define what is an economic and political system that calls for public ownership of virtually all enterprises, under the direction of a strong central government?
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