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1 why does a limited commitment constraint lower the equilibrium real interest rate2 under what conditions will a
1 does the existence of credit market imperfections imply that there is a useful role for government tax policy2 what
1 what effects do credit market imperfections have on the interest rates faced by lenders and borrowers2 what are the
suppose that a consumer has income y in the current period income y in the future period and faces proportional taxes
suppose that there is a shift in the representative consumers preferences namely the consumer prefers given the market
the government decreases current taxes while holding government spending in the present and the future constanta using
1 explain how intertemporal substitution is important for current labor supply and for the current demand for
in the monetary intertemporal model suppose that the money supply is fixed for all time determine the effects of a
1 why is it a good idea for the central bank to engage in interest rate targeting2 list five monetary policy rules3
calculate the ratio of real investment expenditures to gdp quarterly for the period 1947- 2012 and calculate the real
suppose that zoelig increases and that k increases at the same time show that it is possible for the real interest rate
suppose that there is a permanent increase in total factor productivity determine the implications of this for current
in the coordination failure model suppose that consumers preferences shift so that they want to consume less leisure
in the real business cycle model suppose that government spending increases temporarily determine the equilibrium
1 does the coordination failure model fit the data2 which is the better macro model the real business cycle model or
1 describe an example of a coordination failure problem2 what causes business cycles in the coordination failure model3
1 should the government act to stabilize output in the real business cycle model2 does the real business cycle model
1 why is money neutral in the real business cycle model2 how can the real business cycle model explain the behavior of
suppose in the friedman-lucas money surprise model that there are money demand shocks and shocks to total factor
suppose in the sticky price model that there is deficient financial liquidity as we studied in chapter 13 and that
1 what happens when the money supply increases in a liquidity trap2 in the new keynesian model does a liquidity trap
1 how is monetary policy determined in the new keynesian model what is the central banks target and what does the
1 are keynesian business cycle models still used if so what for2 what is the key difference between the new keynesian
plot the stock of reserves from january 2008 to the present then look through factors affecting reserve balances and
in the new monetarist model suppose that the central bank conducted a quantitative easing program by issuing outside