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Why would anybody buy the Treasury Bond with a negative yield to maturity? How is this possible?
What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is a single number used in all situations? Explain.
What is the impact of a 10 percent increase in the price of oil on the quantity of oil demanded? What happens to total expenditures?
In 1990, the U.S. government imposed 10 percent tax on certain luxuries such as pleasure boats. What does this imply about the size of the elasticity of demand?
You are asked to propose a strategy to bring the economy out of recession.
Question 1: Provide an explanation of GDP, unemployment, and inflation as measures of economic activity.
You also know that currency appreciation improves the prospects of foreign investments which will likely increase GDP.
Compute Nominal GDP for 2006, 2007, and 2008? Show ALL work. What is Real GDP for 2006, 2007, and 2008? Show ALL work.
What is nominal GDP? What is real GDP? What is included in each? Why are these measures important?
If price level is unchanged, what effect will a monetary policy that is contractionary have on the real income level and private placement balance of a country.
Problem: What is the historical relationship between unemployment and inflation?
Question: Give two costs of anticipated inflation and two costs of unanticipated inflation.
In addition, 200 people in the community are under the age of 16. The unemployment rate is...?
What are the pros and cons of using contractionary and expansionary monetary policy tools under the following scenarios:
Assume that a less developed country called LDC encourages direct foreign investment (DFI) in order to reduce its unemployment rate, currently at 15 percent.
- Analyze the relationship among inflation, unemployment, and the business cycle
What is the relationship between inflation and unemployment and the danger we face if the unemployment rate drops below that natural rate.
Question: How can inflation and risk factor be accounted in a standard discounted cash flow analysis?
What action did the FOMC take, if any, regarding the level of the fed funds rate? Why did it make this choice?
Question: How are GDP, unemployment, and inflation as measures of activity related?
If the price changes above occurred for all goods across the economy during the four year period, explain how nominal GDP and real GDP would differ.
What is inflation, and how does it affect consumers? Is inflation always bad? Describe a situation where inflation is positive?
Inflation, stagflation, recession, depression, expansion, and contraction are commonly used terms in economics and the media.
How are factors such as GDP, unemployment, and inflation relative to a buisness cycle?
What is inflation? What is deflation? What is recession? What are the problems of the current US economy?