Why is consumption so much more stable over the business

Assignment Help Macroeconomics
Reference no: EM133377152

Question: Why is consumption so much more stable over the business cycle than investment? In formulating your answer, discuss household behavior as well as business behavior.

Reference no: EM133377152

Questions Cloud

What is an example of a foreign currency in the world today : What is an example of a foreign currency in the world today that can be exchanged for U.S. dollars? To earn the most points, your introductory paragraph should
How much money do justin and melanie have to save annually : How much money do Justin and Melanie have to save annually, if they can earn a rate of return equal to 5.4%, to cover the cost of the 4-year degree program
Affect level of payment from both public and private payers : What factors affect the level of payment from both public (Medicare and Medicaid) and private payers?
What is price-wage rigidity and do you agree with keynes : What is price-wage rigidity? Do you agree with Keynes assessment that wage-price rigidity requires government's involvement in the markets? Why? Why not?
Why is consumption so much more stable over the business : Why is consumption so much more stable over the business cycle than investment? In formulating your answer, discuss household behavior as well as business
Calculate of share, asset value, debt value, net worth value : Calculate # of shares, asset value, debt value, net worth value. % decline in underlying to get a margin call
Definition describe the curriculum used in classroom : From an educational source, define research-based curriculum. Using this definition describe the curriculum used in the classroom.
What is the size of your profit or loss if the futures price : What is the size of your profit or loss if the futures price is indeed an unbiased predictor of the future spot price and this price materializes?
What is the ranking of the bahamas in relation : Based on your review, what is the ranking of The Bahamas in relation to the Human Development Index (HDI) and at least two (2) other metrics that you have

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

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

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

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..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

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."

  Effect of recession on the investment curve

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.

  Affect of falling domestic investment on trade surplus and

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.

  Crises in the banking sector and bank run

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?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd