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Which of the following criteria must be satisfied when selecting a policy? instrument?
A. The instrument must be observable and measurable.
B. The instrument must be controllable by the central bank.
C. The instrument must have a predictable impact on the policy goal.
D. Only B and C are correct.
E. All of the above are correct.
For the country you examined in discussion 1, use the summary of types of economic systems to classify the economic system of the country. Is this an evolving economic system, i.e. a system in transition to another type of system?
Provide an example when it could be appropriate to conduct a time-series or cross sectional data. Discuss the potential problem that may arise with your example and identify strategies for minimizing the impact of the potential problem.
What problem is the economy facing? Assume you are a governor on the Federal Reserve Board of Governors. What type of policy (easy money or tight money) would you recommend to fix the problem you identified in question 1? Which tool(s) would you reco..
Car Depreciation problem: A common complaint is that a new car will depreciate by 25% as soon as the new owner drives it off the lot. This information comes from resale price data from cars sold just months after the initial purchase. How does advers..
The market system cannot supply each person with an unlimited amount of resources, so choices must be made. Given the following events, Identify whether this event is a macroeconomic issue or a microeconomic issue and explain why you came to that con..
A few years ago we became aware that disposable diapers were a major item being put into U.S. landfills. Some communities discussed banning disposable diapers from their landfills. There were protests from parents groups whose members found disposabl..
Calculate MPC, MPS and the Multiplier if consumption expenditure increases by $4,250 as a result of increase in income from $40,000 to $45,000.
Determined by the ability to find, attract, keep, develop, and tap into the most talented workforce that can be assembled.
What is currency crisis (or financial crisis) What are the major stages of a financial bubble Use one example (Mexican peso crisis. Asian financial crises. Argentine financial crisis, or 2008 financial crisis) to illustrate these stages.
The following figure shows the short-run cost curves for a perfectly competitive firm - What is the shutdown price for the firm? At what price would the firm just make normal profits? What area would represent total fixed cost at this price
Calculate and graph the ration of: (i) real residential investment to real GDP; (ii) real non-residential investment to real GDP; and (iii) real inventory investment to real GDP. Which of the components of investment shows the most (least) variabilit..
Illustrate what are equations for IS and LM curves. Illustrate What is equilibrium level of income and interest rate.
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