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Assignment:
The famous economist, Adam Smith's quote from his book, The Theory of Moral Sentiment, notes this observation of society... "led by an invisible hand... without knowing it, without intending it to advance the interest of society". Is there an ethical (business or personal) component to A. Smith's observation? If no/yes, explain the economic rationale of your opinion. If economic progress has its roots in Christian theology and other religious beliefs and is organized around the principles of compassion, then is the better model for economic success self-interest or is it one that suits the common good of all society? Can you identify a scripture verse or (para phrase verse) from Christian teachings or another religion that aligns with the ethics of choosing self-interest and/or the common good of all society? Include the scripture verse and explain why the verse align with principle one of macroeconomics.
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 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. 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..
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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."
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.
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.
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?
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