Reference no: EM132405684
1. Why does inflation make money an imperfect store of value?
2. Why are travelers' checks classified as money, but credit cards are not?
3. What really gives money value?
4. Why do banks keep excess reserves to a minimum?
5. Why does the money supply grow by an amount much greater than the initial amount of a loan made by a bank?
6. Note the difference between the federal funds rate and the prime rate.
7. The Fed has been trying to help the economy out of recession since 2008. What policies has the Fed pursued? Have these policies been successful?
8. Interest rates a couple years ago were at historic lows, yet the economy was still struggling. What other factors might have been at work causing businesses and households not to borrow and spend in a robust manner?
9. Why might a strengthening of the U.S. Dollar be a good thing?
10. Why does contractionary monetary policy cause interest rates to rise?
11. Why does expansionary monetary policy causes interest rates to drop?
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Derive an expression for the velocity of money
: Let the demand for real balances, [M/P]d, equal kY, where kis a constant proportionality and Y is real income. Derive an expression for the velocity of money.
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What is the current deficit
: What is the current deficit? What would the deficit be for each of the next 5 years if we held GE constant at 3000?
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Define unemployment
: Explain both equilibrium and disequilibrium unemployment graphically. What should the policymakers do to reduce involuntary unemployment?
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Government program that provides payments to workers
: Consider two countries, Italy and Austria. In Italy, there is a government program that provides payments to workers who lose their jobs (unemployment benefits)
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Why does inflation make money an imperfect store of value
: 1. Why does inflation make money an imperfect store of value? 2. Why are travelers' checks classified as money, but credit cards are not?
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Calculate the income tax jade needs to pay
: Suppose the marginal tax rate is 20 percent, which applies to income over $10,000. Jade earns $50,000.
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Development of new processes and procedures
: What type of functions or activities require coordination in the project - risk management, cost and schedule control, quality assurance, change control
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Determine with the aid of diagrams the effects
: Determine with the aid of diagrams the effects of this on current aggregate output, current employment, the current real wage and real interest rate.
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Explain the adjustment mechanism that moved the economy
: Provide a brief economic explanation for any differences between these 3 periods and explain the adjustment mechanism that moved the economy
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