Economics Answers

Context Links: https://saylordotorg.github.io/text_personal-finance/s05-personal-financial-planning.html + https://saylordotorg.github.io/text_personal-finance/s06-basic-ideas-of-finance.html

Instruction: Implementing the personal finance terms within the provided links above, respond to the following prompt.

Extra Directions: Answer this prompt as if you were a sophomore around the age of 15-16 in high school.

Prompt: The quote by Adam Smith identifies you can make money if you have money. If you were given $100,000 dollars today how would you use this money to make additional money in the future?

Requirements: Create a list of 3 options you could take to make money from the $100,000; identify the pros and cons of each option and identify your first choice.

1. Create your list of three options.
2. Identify the pros and cons of each option.
3. Weigh each option and identify your first choice.

Context Links: https://saylordotorg.github.io/text_personal-finance/s06-basic-ideas-of-finance.html + https://saylordotorg.github.io/text_personal-finance/s05-personal-financial-planning.html

Instructions: Implementing the personal finance terms within the provided links above, respond to the following prompt.

Money Makes Money

The quote by Adam Smith identifies you can make money if you have money. If you were given $100,000 dollars today how would you use this money to make additional money in the future?

Please create a list of 3 options you could take to make money from the $100,000; identify the pros and cons of each option and identify your first choice.

Instructions

1. Read the discussion board.
2. Create your list of three options
3. Identify the pros and cons of each option.
4. Weigh each option and identify your first choice.

compare adam smiths view of a nations wealth with that of modern economists who rely on gross domestic product. Would Adam Smith agree that gross domestic product is the best way to measure a nations economic output?

If the government paid for new infrastructure such as highways, schools, airports, and high speed internet, how much return should they expect in economic growth?

A. About as much as they spend

B. A multiplier of about 20 times greater return

C. A multiplier of about 5%

D. A cost of double their investment due to interest

Consider a central bank that has an inflation target, π*. The Phillips curve is given by,

πt- πt-1 = -α(ut-un).

a) Is the central bank likely to be able to hit its inflation target every period? Explain

b) Suppose the natural rate of unemployment, Un, changes frequently. How will these changes

affect the central bank’s ability to hit its inflation target? Explain.

What are the macro prudential tools? Explain by giving three appropriate examples.

The Mundell - Fleming assuming imperfect capital mobility, analyze the effects of an expansionary fiscal policy. Consider the effect of the policy on the income when the exchange rate is fixed and when the exchange rate is flexible. Explain by using the appropriate graph. Give your conclusion regarding the effectiveness of policy.

The price will change automatically over time when the output equilibrium below the natural output. Discuss three (3) views related to the price movement. Support your answer with appropriate equation and graph.

(a) The existing debt would reduce the flexibility of budget arrangement, derive the evolution of the debt to GDP ratio (debt ratio) and explain the change in the debt ratio over time. (8 marks)

(b) Based on the answer in question (a), what is the determinant factors of change in the debt ratio and explain its implication briefly. (8 marks)

(c) Budget 2020 indicate a little bit changes on tax structure of Malaysia through the increasing tax rate of high income group from 28 percent to 30 percent; and reducing tax rate on small medium enterprise. Based on the economic growth equation, discuss the impact of debt restructuring to the target of being a developed nation by the year 2020. (9 marks)

Suppose there is a market demand fuction given by:p=30-1/2Qd,and market supply function :Qs=30+2p,what would be equilibrium price and quantity (respectively)