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Why would the Fed choose to keep the interest rate as is (close to zero) instead of raising it given these conditions: incomes have climbed, but household spending has decreased. labor market conditions have improved, but growth in economic activity has slowed. The interest rate is lower than the target rate of 2%, and consistently been too low for some time.
Why did they make this choice? Would another decision be more helpful? What macroeconomic principles can be used to understand what is happening here?
One often hears statements asserting each of the following, and/or these notions are reflected as implicit assumptions embodied in statements
q1. suppose that two economies initially have the same level of real income and both suffer unanticipated declines in
Why was/were the firm(s) investigated for antitrust behavior?
Your wealthy professor would like to live in a golfing community. A house is for sale in Greenbryer. The purchase price is $899,900. Assume that your professor is willing to pay the full asking price. The bank loves to make loans to professors and ha..
Consider again The Experience Machine from Week 2. Would you get in the machine? Carefully explain why or why not. Utilitarianism is a deceptively simple moral theory that has quite a bit of intuitive appeal. But it also has its share of problems. H..
How do you think state and local governments will deal with the underfunded pensions problem? What problems would it cause?
Demonstrate the ability to read, understand and assess how social insurance policies influence and are influenced by the prominent economic theories of social welfare.
Go to the internet and find a news article published within the last three months that discusses perfect competition, summarize key points
Why is the current structure of benefits and funding for U.S. Social Security expected to be unsustainable without an increase in the payroll tax rate or a decrease in pension benefits? b. If there is no reform in U.S. social security laws the benefi..
What is the simple payback period for an engineering project that requires $12,000 initial investment
Write down an individual’s optimization problem regarding consumption of good and bad behaviors using the Bellman equation representation of lifetime utility (as we did in class). Be sure to include the budget and time constraints and any constructs ..
Unemployment insurance is one of the social welfare programs that has been implemented in many advanced economies.
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