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1. In 2001, U.S. 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. Use the IS-LM-FX model to compare the effects of these two policies in terms of their implications for Y, I, E, C, I, and TB.
2. The Lithuanian lita is currently pegged to the euro. Suppose that the Eurozone reduces its money supply. Using the IS-LM-FX model, illustrate and explain how this affects Y, I, C, I, M, and TB in Lithuania (Home).
Assume that the Fed Reserve adopts an inflation targe of 3% for its monetary policy.
Illustrate what are the major differences among an open and closed economy
Explain the effectiveness of the exchange rate regime being used in terms of achieving macroeconomics objectively in South Africa and discuss any four macroeconomics objectives which can be used to judge the performance of the economy.
Now suppose the U.S. government wants to buy enough wheat to raise the price to $3.50 per bushel. With the drop in export demand, how much wheat would the government have to buy? What would be the cost to government?
Suppose the only firm in an economy produces $10 worth of final goods in a year and only sells $9 of goods that year. We know that GDP can be equivalently be thought of as either total spending on new goods and services in an economy.
assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision
Advertising can inform buyers, but sellers must incur costs to advertise. If so advertising can result in higher prices to consumers.
Describe how the topic you select relates to the growth of United State banking overseas. Include data how your topic contributes to interdependence among economies and financial markets, and to global financial stability.
The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price () of soybeans is $550 per ton and is represented by the horizontal black line.
How does a government budget deficit affect the economy
If technological change increases structural unemployment, why do most governments and economists encourage such change?
Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. Households deposit $5,000 in currency into the bank and that currency is added to reserves. What level of excess reserves does the bank..
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