Reference no: EM13175709
In 2008, the debt of Canadian households rose much faster than their wealth as stock markets corrected and the housing market slowed down. During the first quarter of the year, overall household debt rose by about 3 percent, while personal disposable income rose by 2 percent (Financial Post Magazine, August 19, 2008).
a. Explain why the growth of household wealth slowed in Canada.
b. When a household buys shares (stocks), does that represent consumption, saving, or investment? Explain.
c. When a household buys a new house, does that represent consumption, saving, or investment? Explain.
d. What factors may influence a household when deciding between buying stocks, bonds, or a house?
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Explain phillips curve, aggregate demand, and aggregate supp
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Explain comparative advantage in producing fish
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Determine net interest payments
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Explain canadian exporters of goods to the us
: Canadian firms that buy machinery and equipment from US suppliers c.cross border shoppers from Canada who shop for goods in the US retired Canadians who live in Arizona and Florida during the winter months
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Why the growth of household wealth slowed in canada
: When a household buys a new house, does that represent consumption, saving, or investment? What factors may influence a household when deciding between buying stocks, bonds, or a house?
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Explain what will happen to potential gdp
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Calculate net exports
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Determine the real gdp for a year
: If the nominal GDP is $559 billion in the base year, and it rises to 577 in year 1, and 605 in year 2, what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2?
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How the announcement to affect the value of the bond
: Today, the Federal Reserve announced that it is reducing the discount rate by 0.5%. How would you expect this announcement to affect the value of your bond?
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