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Assignment: USA Macro Economic
• Do you feel that the interest rate that is "set" by the Federal Reserve is too low?
- Provide an argument why interest rates cannot go lower - and need to be raised during the next Board of Governors meeting.- How would you advise the board, as Chairperson, to go about implementing a raise in the interest rate?- Explain and discuss this interest rate that you're trying to raise.
• What are the feedback effects of this interest rate increase on the US economy?
- Look at this in terms of the Aggregat Expenditure Equation - C(Household Consumption), I(Investment), G(Government spending), NX(Net Exports).
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Real GDP, the rate of inflation, and the rate of unemployment are THREE primary indicators of the state of the macroeconomy? The government influences the macroeconomy through its level of spending, taxes, and control of the money supply?
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Suppose that Wal-World and Tarbo are independently deciding whether to implement a new bar code technology. It is less costly for their suppliers to use one system and the following payoff matrix shows the profits per year for each company resulti..
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Assume that a borrower and a lender agree on the nominal interest rate to be paid on a loan.
Write your responses in complete sentences. Your answers to each question should include 2-3 paragraphs (125-250 words). 1. What shape did the short-run aggregate supply curve have during the 1930s, according to Keynes? Explain.
Many US companies have located in contries all over the globe. Would they support or fight free trade. Explain your position.
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