Reference no: EM133232202

Why is the present value of money to be paid in the future less than the amount to be paid, but the future value of money invested now and withdrawn later is greater than the original investment?
Why is it that $400 per month paid over five years will not be enough to buy a $24,000 car?
Why is there usually a positive relationship between the time a bond will mature (how long the investor has to wait to get her money) and the interest rate on that bond?
Of the reasons that the aggregate demand curve and the demand curve are downward sloping, each has one labeled the "real balances effect." How are they different?
If we want our president to "do something" about the economy, what do we usually have in mind? How can we use the aggregate demand-aggregate supply model to show that what we have in mind will work?
Suppose a president says: "We are in a crisis and on the verge of another Great Depression. We need to increase government spending to give the economy a boost." What determinant of aggregate demand is the president counting on to keep us out of that depression? What determinant of aggregate demand is the president hoping you do not respond to?
Which lag described in this chapter is the concept of "shovel-ready" intended to combat.
Explain how the built-in economic stabilizers work in the U.S. economy.
Assign the correct label to the corresponding events/policy actions that occurred during the 2007-2011 time period. Events/policy actions: TARP, the 2009 stimulus package, the 2010 extension of the Bush tax cuts, the reduction in taxes most Americans paid because they had less income than they would have had. Label: discretionary fiscal policy, nondiscretionary fiscal policy.