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1. Assume that the money market is initially in equilibrium for an economy.
Explain with the aid of a diagram how the market adjusts to
(i) an increase in money supply
(ii) an increase in real GDP
2. Choose an economy of interest to you and answer the following question:
What measures did the country's central bank adopt in the 2008 period, in the face of the worsening global financial crisis? Name 2-3 key measures & describe briefly how it was implemented.
Which of these measures were effective? Which ones were not? Provide an economic explanation of why do you think so.
Wendy is evaluating a capital budgeting project that should last for 4 years. The project requires $ 800,000 of equipment. She is unsure what depreciation method to use in her anal
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Determine out the future value of Rs.1000 compounded yearly for 10 years at an interest rate of 10 percent. Solution: The future value 10 years thus would be FV = PV (1+k)
Suppose that the annual rate of interest is 4%. (a) What is the monthly rate? (b) Consider a 3-year lease on a car that is worth $20,000 today. The first payment on the lease
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