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Consider an economy, that we will call Balanced, which always maintains a current-account balance equal. What could be said regarding Balanced's economic GDP?
In which of these countries will GDP be less than GNI and in which will it be greater? Justify your answer.
Before the 2008 global economic crisis, one of the most serious economic. Which the country simultaneously had a current-account deficit and fiscal deficit.
What do you think happened to the value of the U.S. dollar when BMW moved an important part of its manufacturing facilities to the United States some years ago?
What would the U.S. government have to do to prevent the value of the dollar from changing as a result?
Explain how, if a country wants to raise the value of its currency in foreign exchange markets, it might use the following tools to do so.
How does this policy decision affect the demand for dollars and thus the exchange rate between the dollar and other currencies, such as the euro?
Add the squares of priGPA and ACT to the equation. What happens to the coefficient on atndrte? Are the quadratics jointly significant?
Given that race is determined at birth and is beyond an individual's control, explain how nonwhite can be endogenous explanatory variable in a regression model.
Explain how experience rating of insurance-charging higher premiums to higher-risk customers-affects the incidence of both adverse selection and moral hazard.
In a world without deposit insurance, what are some of the mechanisms that would arise to punish bank managers who acted irresponsibly?
Who pays when an insured depository institution fails and its depositors are nonetheless reimbursed for the full amount of their deposits?
Was the Fed justified in targeting specific sectors of the economy during the financial panic of 2008? Why or why not?
The Fed was given great power in 1913 to undertake potentially beneficial actions. Did this also give it great power to engage in potentially harmful actions?
In the long run, if the Fed fails to remove the excess reserves from banking system, what will the banks do with them? What are the implications for inflation?
How did this change likely alter the incentives of banks to lend out excess reserves? What are the implications for aggregate demand? Explain.
If the Fed had not injected reserves into the banking system in 2008, what would have been the consequences for the banks and for aggregate demand?
If the Fed continued to pay interest on required reserves but stopped paying interest on excess reserves, how would bank lending incentives be changed?
How did the Fed's long-standing policy of not paying interest on bank reserves act much like a tax on bank reserves?
What does the existence of the Social Security system do to the incentive of a worker to save for his or her retirement?
How is the incentive to retire prior to age 70 affected by this provision for benefit increments, relative to a system in which benefits were not raised?
What is the effective marginal tax rate imposed by the Social Security system on such earnings from work? Explain.
Analyze how each of the following hypothetical policy change would affect people's decision to retire. Would the change induce people to retire sooner or later?
What do you think explains the ability of older people to win political battles with younger people?
Why can you suggest why states would have this rule but the federal government would not?