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Question: In 2001, President George W. Bush and Federal Reserve Chairman Alan Greenspan were both concerned about a sluggish U.S. economy. They also were concerned about the large U.S. current account deficit. To help stimulate the economy, President Bush proposed a tax cut, while the Fed had been increasing U.S. money supply. Compare the effects of these two policies in terms of their implications for the current account. If policy makers are concerned about the current account deficit, discuss whether stimulatory fiscal policy or monetary policy makes more sense in this case. Then, reconsider similar issues for 2009-10, when the economy was in a deep slump, the Fed had taken interest rates to zero, and the Obama administration was arguing for larger fiscal stimulus.
What would you do with your stock of inventories? What do you expect to happen to your sales? How would you answer parts a and b if you expected a 5% increase in income instead of a decrease?
Draw the daily budget constraint without any program participation for the single parent described above. On the same graph, draw the daily budget constraint under TANF for the single parent described above. At what level of money income does the ..
What is the term for a situation when the quantity demanded of a good falls when the price of a good rises, other things are equal?
1. Explain the causes of the turmoil in Egypt in early 2011. 2. Why do you think Muslim Bortherhood's democratically elected government was overruled by military?
Shannon bakes cookies and Justin grows vegetables. In which of the following cases is it impossible for both Shannon and Justin to benefit from trade?
Draw a well labeled graph of the market for paintbrushes. In your graph indicate the equilibrium price and the equilibrium quantity. Also, identify the area that corresponds to CS and the area that corresponds to PS.
What explains the success of the convenience stores? Relate how behavioral economics and prospect theory shed light on many consumer behaviors.
Explain the speed with which money changes hands and analyze the impact on the monetary system 150 words please.
1. Explain the difference between the sample average and the population mean. 2. Explain the difference between an estimator and an estimate. Provide an example of each.
What is a government budget deficit. Elucidate how does a federal budget deficit affect the economy.
Suppose instead that the government wishes to impose a value tax of $0.25 on each dollar of the consumer's expenditure on good 1.Show the effect of imposing this tax in a graph containing before and after budget lines.
Insurance companies must provide insurance to drivers who may take risks that go unreported because they don’t wreck or get ticketed (or if they do wreck or get ticketed, it goes unreported to the insurance company). Briefly explain the principal-age..
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