Expecting a huge return on investments

Assignment Help Macroeconomics
Reference no: EM132501317

Using the notions of ex ante and ex post interest rates, explain how a bank could be expecting a huge return on its investments and end up with very small real returns.

Reference no: EM132501317

Questions Cloud

Analyze the policies a developing country : Analyze the policies a developing country could adopt in order to improve its world economic ranking.
What might happen above the relevant range of production : What might happen ABOVE the relevant range of production? Unit variable costs might increase, as workers have to be paid overtime.
Discuss the current level of the federal budget deficit : Discuss the current level of the Federal budget deficit and the implications of the deficit. Support a proposal for addressing these concerns.
What is the best estimate of total costs : What is the best estimate of total costs when they expect to drive 325,000 miles? The Apollo Delivery Service has developed cost equation
Expecting a huge return on investments : Using the notions of ex ante and ex post interest rates, explain how a bank could be expecting a huge return on its investments and end up with very small real
Effects of interest rates on future direction : If an analyst was considering the effects of interest rates on future direction of the economy, would she focus on the short rates as controlled by the central
Excellent tool that instituted by government : Why would economists argue that automatic stabilizers are an excellent tool that instituted by government that can quickly fight a newly developing recession
How materials handling costs will be allocated to products : How Materials handling costs will be allocated to products at the rate of? Chinchilla, Inc. uses activity-based costing. The company produces X and Y.
Define and describe the concept of fiscal policy : Define and describe the concept of "fiscal policy", focusing on what is manipulated, by whom and for what reason

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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