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1. What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?
She is also curious about the time value of money concepts. Specifically, she has the following questions about these concepts:
2. Why are consumers considered to be risk averse? What methods could used to deal with risk?
3. It has been said that a dollar received today is worth more than a dollar received tomorrow. What does this mean and what is the significance to the economy?
4.What is the difference between the present value of a future sum of money and the future value of a present sum of money? What is the significance of these concepts to economics?
5. If you deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double?
Explain briefly why capital is the fixed factor in the short run, and not labor.
Dairy farm Industry a small producer of milk and cheese, has estimated the quantities of milk.
Illustrate what is the correlation between all of these, and the level of unemployment and spending therefore GDP.
Although economists speak as if economic growth is necessarily a good thing, many question the sustainability and even morality of ever raising economic growth.
Illustrate what it says regarding the current state of the economy and the latest reading and trend.
Find out the equilibrium market price. Find out the profits of the leader and the follower
If the government decides to intervene to return the economy to full employment, elucidate what will happen to the economy in the short run and in the long run.
Why were those who took out hybrid loans at far greater risk of foreclosure when the Fed began raising interest rates and how are each of the following events likely to affect the value of the dollar relative to the euro?
Illustrate the impact of inflation on consumption, aggregate demand.
Explain how would either decision change if the government imposed a 20 percent tax on earnings and interest income. Illustrate what would happen if the government exempted interest income.
An economy can be stimulated by printing more money. Illustrate what are the dangers of doing that. Inflation can be decreased by reducing the money supply.
Illustrate what is the reserve ratio if the bank has $160 million worth of checking deposits, $32 million worth of reserves in deposits at its federal reserve district bank, and $8million worth of reserves in vault cash.
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