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Suppose you have been elected to Congress. One day, one of your colleagues makes the following statement:
The Fed chair is the most powerful economic policy maker in the United States. We should not turn over the keys to the economy to someone who was not elected and therefore has no accountability. Congress should impose an explicit Taylor rule on the Fed. Congress should choose not only the target inflation rate but the relative weight on the inflation and unemployment targets.
Why should the preferences of an individual substitute for the will of the people, as expressed through the democratic and legislative processes?
Do you agree with your colleague? Discuss the advantages and disadvantages of imposing an explicit Taylor rule on the Fed.
The inflation rate over a 10 year period for an item that now costs $1000 is shown below Year 1, 10% Year 2, 0% Year 3, 10% Year 4, 0% Year 5, 10% Year 6, 0% Year 7, 10% Year 8, 0% Year 9, 10% Year 10, 0% What will be the cost at the end of year 1..
You have just started work for a small company, FitCo, that develops private fitness clubs in small towns. FitCo buys or leases a local hotel or motel, then renovates to provide a gym, swimming pool, sauna, Jacuzzi, and a small café where patrons can..
the policies of the federal govenment influence the outcome of the various activities in that economy. when government
Microsoft has been a giant in the software industry. Can we define Microsoft as a monopoly? Please describe. In addition, whether the Learner Index works well to define the market power for Microsoft in the software industry? Describe your answer.
Describe the likely impact of each of these three proposals on total surplus including social cost and benefit and Which of these proposals is most consistent with the Coase approach to externalities
cite three example of recent decisions which you made in which you at least implicitly weighed marginal costs amp
Fiona requires a minimum level of consumption, a threshold, to derive additional utility: U(X,Z) is 0 if X+Z is less than or equal to 5 and is X+Z otherwise. Draw fionas indifference curves. Which of our usual assumption does this example violate.
You are required to identify the intervention being applied or suggested and the objective behind the policy. Using demand and supply analysis, suggest the impact that this policy may have on the relevant market
Your ethical code of conduct plan for your company's international business expansion plan should include all of the different concepts and ideas covered over the past several weeks.
The evidence on the supply curve of financial capital is controversial, however at least in the short run, the elasticity of savings with respect to the interest rate appears to be __________.
what are the trade offs involved between current and future consumption/production? In the absence of government intervention, would we expect the consumers/producers to make optimal intertemporal decisions?
select a product produced in the u.s. and a foreign country which you are familiar from the e-activity. determine if
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