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Macroeconomics
measuring the effect of consumption
What is the best way to choose
1. GDP per capita or
2. GDP average income
& why
Thank you
What is the best way to choose
1. GDP per capita or
2. GDP average income
& why
Thank you
Macroeconomics
Why is gdp calculated at nnp at factor cost
Macroeconomics
Describe the function and purpose of the financial system in the United Kingdom
Macroeconomics
HOW MONITARY AND FISICAL POLICY STABlize the business cycle in list developed countries
Macroeconomics
Describe and analyse the main macroeconomics issues in Malaysia for the period from 2005 to 2010.
Macroeconomics
I need a one example of how to calculate GDP NDP PI NI (with numbers , and answer)
Please answer me as fast as possible because tomorrow is my exam
Please answer me as fast as possible because tomorrow is my exam
Macroeconomics
I lend you a $1,000 today and you agree to pay me $1,100 one year from today. You are going to buy a computer with the $1,000 that your borrow from me. You anticipate that if you wait a year to buy the computer, its price will rise to $1,070.
Macroeconomics
1) In August 2011, the Fed's FOMC voted to decrease the federal funds rate target on several different occasions, reducing it to lower its target for the federal funds rate within the range between 0.25 basis points to 0% percent. The Committee took this action in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures. What action in the "open market" would the Fed's trader have had to take, other things equal, in order to induce this decrease in the federal funds rate? (you do not need to give a specific numerical answer).
2) Draw a supply-demand diagram of the Federal funds market which illustrates the effects of a massive treasury bill sale by the Fed in the open market.
3) If banks desire to increase their lending, but the Federal Reserve is not adding reserves to the banking system, what will happen to the level of short term interest rates? Explain your answer carefully.
4) "Sweep" accounts are combination checking/money market accounts which large banks currently offer to their corporate customers. These accounts sweep just enough funds out of the money market portion of the account to prevent checks written on the checking part of the account from bouncing. Suppose that banks suddenly made these accounts available to households. Draw a supply/demand diagram of the federal funds market to show the effect on the federal funds rate if the Fed did nothing. What action in the open market would the Fed have to take to maintain its existing interest rate target under these circumstances?
5a) Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper.
5b) Why is the yield on short-term Treasury bills usually less than the federal funds rate?
6) Suppose households and small firms withdrew funds from banks in response to rumors circulating that a computer virus would destroy banks customer account databases, or the recent events of financial meltdown in the Wall Street. What action would the Fed have to take in the open-market to maintain its existing fed funds target rate?
2) Draw a supply-demand diagram of the Federal funds market which illustrates the effects of a massive treasury bill sale by the Fed in the open market.
3) If banks desire to increase their lending, but the Federal Reserve is not adding reserves to the banking system, what will happen to the level of short term interest rates? Explain your answer carefully.
4) "Sweep" accounts are combination checking/money market accounts which large banks currently offer to their corporate customers. These accounts sweep just enough funds out of the money market portion of the account to prevent checks written on the checking part of the account from bouncing. Suppose that banks suddenly made these accounts available to households. Draw a supply/demand diagram of the federal funds market to show the effect on the federal funds rate if the Fed did nothing. What action in the open market would the Fed have to take to maintain its existing interest rate target under these circumstances?
5a) Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper.
5b) Why is the yield on short-term Treasury bills usually less than the federal funds rate?
6) Suppose households and small firms withdrew funds from banks in response to rumors circulating that a computer virus would destroy banks customer account databases, or the recent events of financial meltdown in the Wall Street. What action would the Fed have to take in the open-market to maintain its existing fed funds target rate?
Macroeconomics
Given the significant trend of declining oil price and expected independence of oil production by US in coming decade, draw an AS/AD diagram of macroeconomics model (not the oil market itself), explaining the effect on the US macro-economy of expected decline in oil price in 2014 and beyond. In your explanation in words with the help of the diagram, you must clearly explain the connection between changes in oil price and the fluctuations in macroeconomic fundamentals in the US economy. Then show the impact of continuous fall in oil price on the US economy by using the same AD-AS model during the recovery period of the economy from its great recession of 2008. The most recent price of crude oil is fluctuating within the range between $100 and $105/barrel.
Finally, explain why sharp decline in oil prices might not necessarily have positive or negative impact on the US equity markets (stock market) even at the current trend of declining but volatile oil prices.
Finally, explain why sharp decline in oil prices might not necessarily have positive or negative impact on the US equity markets (stock market) even at the current trend of declining but volatile oil prices.
Macroeconomics
Which of the following fiscal policy changes would have a larger overall negative impact on AD and RGDP? Explain your answer in a paragraph or two with credible logics and analysis.
A) A program of tax hike, distributed uniformly across the households earning over $300K annually filing tax returns, amounting to $85 billion in total tax hikes.
Answer: This would have an overall large negative impact on AD and RGDP. Based on the noted posted in the multiplier effects and the calculations it shows that due to the large numbers it would make a bigger impact.
Alternatively,
B) An $85 billion sequester (called automatic federal government spending cut) that went into effect on March 1, 2013. This was an across-the-board spending cut in federal government’s various existing programs and services, including maintenance of major infrastructures and aviation traffic control systems.
A) A program of tax hike, distributed uniformly across the households earning over $300K annually filing tax returns, amounting to $85 billion in total tax hikes.
Answer: This would have an overall large negative impact on AD and RGDP. Based on the noted posted in the multiplier effects and the calculations it shows that due to the large numbers it would make a bigger impact.
Alternatively,
B) An $85 billion sequester (called automatic federal government spending cut) that went into effect on March 1, 2013. This was an across-the-board spending cut in federal government’s various existing programs and services, including maintenance of major infrastructures and aviation traffic control systems.
