Draw a graph of the credit market

Assignment Help Microeconomics
Reference no: EM131115139

Assignment

Written Response Questions

Article 1: Ben Bernanke, Why are interest rates so low?

https://www.brookings.edu/blogs/ben-bernanke/posts/2015/03/30-why-interest-rates-so-low

Article Review: This is a post from Ben Bernanke's blog. The purpose of the post is to explain why interest rates are so low and the role that the Federal Reserve (the Fed) plays in determining the rates.

Question 1: Draw a graph of the credit market and explain the difference between the real interest rate and the nominal interest rate.

Question 2: In paragraph 5, Bernanke discusses what the Fed is trying to do with its benchmark interest rate. Summarize the Fed's objectives as described by Bernanke and explain why trying to set the benchmark rate above/below the equilibrium rate would have negative consequences for the economy.

· Section 2.3 discusses economic questions; also you may want to reference the discussions of the Federal Reserve from the various book chapters.

Question 3: As Bernanke mentions some commenters have suggested that the Fed has "thrown savers under the bus" by maintaining low interest rates. Explain why Bernanke thinks this analysis is incorrect. Do you agree or disagree with Bernanke's position?

Article 2 : The Wisdom of Free Trade.

https://www.nytimes.com/2015/04/26/upshot/economists-actually-agree-on-this-point-the-wisdom-of-free-trade.html?_r=0

Article Review: This is an article written by a very talented economist George Mankiw. The article discusses why economists are generally supportive of free trade.

Question 1: Based on the material in Chapter 14, discuss the arguments for international trade and the arguments against international trade.

Question 2: Explain reasons the article gives for why the public and politicians are not supportive of expanding international trade.

Question 3: Discuss policy ideas that may mitigate the argument against international trade you have mentioned in Question 1 and Question 2. What decision rule would you use to decide if these policies make international trade "worth it"?

· The book and the article also discuss the positives of international trade. When discussing a decision rule, make sure you consider how your policy may impact the benefits to free trade and make sure you include the benefits in your decision rule.

Reference no: EM131115139

Questions Cloud

Compare a chosen lcc with a full-service airline : In a short research paper, compare and contrast a chosen LCC with a full-service airline using Doganis' 5 key product features as a framework (price, schedule, comfort, convenience, and image).
Prepare the journal entry to record amortization expense : The fair value of the copyright at December 31, 2011, is $3,400,000. Prepare the journal entry (if any) necessary to record the increase in fair value.
Do you believe that the solution proposed by doug is ethical : Do you believe that the solution proposed by Doug is ethical? Explain. Tonya Martin, CMA and controller of the Parts Division of Gunderson Pty Ltd, was meeting with Doug Adams, manager of the division
Idea generation to commercialization : Outline the steps you will take to bring your product to market from idea generation to commercialization, using a multi-step product development process.
Draw a graph of the credit market : Draw a graph of the credit market and explain the difference between the real interest rate and the nominal interest rate. Why the public and politicians are not supportive of expanding international trade.
What organizational change resulted from pressure for change : What was the internal or external pressure that caused the change? Compare the driving force for the change to the specific types of pressures noted in your reading assignments.
Calculate the induced armature voltage at rated load : A 50-kW, 250-V, short-shunt compound generator has the following data: Ra = 0.06 Ω, RS = 0.04 Ω, and Rf = 125 Ω. Calculate the induced armature voltage at rated load and terminal voltage. Take 2 V as the total brush-contact drop.
How much will grecian tile pay in interest : If six-month LIBOR is 4½ percent over the first six-month interval and 53/8 percent over the second six-month interval, how much will Grecian Tile pay in interest over the first year of its Eurodollar loan?
Prepare the july 1 entry for brandon corporation : Prepare the December 31 entry for Brandon Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,000.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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!

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