Economics 14.02 Problem Set 2 Answers Due Date: 2/25/04
... 5. Taxing the illegal or underground economy is not possible with either fiscal or monetary policy. False. We have seen that the opportunity cost of holding currency is lost interest and inflation (the nominal interest rate). A large portion of United States currency is held abroad and likely used f ...
... 5. Taxing the illegal or underground economy is not possible with either fiscal or monetary policy. False. We have seen that the opportunity cost of holding currency is lost interest and inflation (the nominal interest rate). A large portion of United States currency is held abroad and likely used f ...
Sample Financial Ratios
... How quickly an agency can convert its short‐term assets into cash to pay its short‐term liabilities. Watch for big decreases in this number over time. Make sure the accounts listed in "current assets" (numerator) are collectible. The higher the ratio, the more liquid the organization. Generally, ...
... How quickly an agency can convert its short‐term assets into cash to pay its short‐term liabilities. Watch for big decreases in this number over time. Make sure the accounts listed in "current assets" (numerator) are collectible. The higher the ratio, the more liquid the organization. Generally, ...
Econ 375 Problem Set 3 Key 1. This one is straight out of the book. 2
... a) A tax cut would increase the natural rate of output since normal labor supply would increase. b) The tax cut would shift each of the three curves to the right. The result would be higher output, but an indeterminate effect on price. c) The traditional view suggests that a tax cut would stimulate ...
... a) A tax cut would increase the natural rate of output since normal labor supply would increase. b) The tax cut would shift each of the three curves to the right. The result would be higher output, but an indeterminate effect on price. c) The traditional view suggests that a tax cut would stimulate ...
Use the following to answer question 1
... D) the interest rate is fixed whereas in the IS-LM model it is allowed to vary. 5. If the money supply increases, then in the IS-LM analysis the ______ curve shifts to the ______. A) LM; left B) LM; right C) IS; left D) IS; right 6. In the IS-LM model when M/P rises, in short-run equilibrium, in the ...
... D) the interest rate is fixed whereas in the IS-LM model it is allowed to vary. 5. If the money supply increases, then in the IS-LM analysis the ______ curve shifts to the ______. A) LM; left B) LM; right C) IS; left D) IS; right 6. In the IS-LM model when M/P rises, in short-run equilibrium, in the ...
1. The need for reform
... affordable, quality aged care has the potential to affect the lives of Australians of all ages through its effects on government spending and the availability of people to work. Our ageing population will also test the adequacy of the retirement income system. With the fastest rate of population gro ...
... affordable, quality aged care has the potential to affect the lives of Australians of all ages through its effects on government spending and the availability of people to work. Our ageing population will also test the adequacy of the retirement income system. With the fastest rate of population gro ...
Chapter 27 Key Question Solutions
... (Key Question) Assume there are no investment projects in the economy which yield an expected rate of return of 25 percent or more. But suppose there are $10 billion of investment projects yielding expected rate of return of between 20 and 25 percent; another $10 billion yielding between 15 and 20 p ...
... (Key Question) Assume there are no investment projects in the economy which yield an expected rate of return of 25 percent or more. But suppose there are $10 billion of investment projects yielding expected rate of return of between 20 and 25 percent; another $10 billion yielding between 15 and 20 p ...
2630_Study Guide 1_A..
... 14. Suppose that in 1998 you deposited $1000 in a savings account that gives 5% interest compounding annually. How much would your savings be worth in 2008? ...
... 14. Suppose that in 1998 you deposited $1000 in a savings account that gives 5% interest compounding annually. How much would your savings be worth in 2008? ...
Lahore School of Economics
... b. Using a ‘variable-weight’ price index, with 1994 as the base year, what are the price indices for 1994 and 1995? What is the inflation rate using this index? Nominal GDP in 1995: 3 x 12000 + 14 x 4000 = 92000 Real GDP in current year (1995, with new Q and old P) = 4 x 12000 + 8 x 4000 = 80000 GDP ...
... b. Using a ‘variable-weight’ price index, with 1994 as the base year, what are the price indices for 1994 and 1995? What is the inflation rate using this index? Nominal GDP in 1995: 3 x 12000 + 14 x 4000 = 92000 Real GDP in current year (1995, with new Q and old P) = 4 x 12000 + 8 x 4000 = 80000 GDP ...
The debt crisis in the peripheral countries of the Euro
... technically, what would be the value of the private or the public debt for the country leaving the EMU? If there is a strong depreciation of the new currency (50% or more), the increase of the external debt will not be sustainable. . Which value for the new currency? In the short run, a depreciation ...
... technically, what would be the value of the private or the public debt for the country leaving the EMU? If there is a strong depreciation of the new currency (50% or more), the increase of the external debt will not be sustainable. . Which value for the new currency? In the short run, a depreciation ...
PDF Download
... In March 2008, the industrial confidence indicator remained unchanged in both the EU27 and the euro area. Despite the downward trend observed since mid-2007, the level of the indicator still stands well above its longterm average. Among the large EU Member States, industrial confidence rose in the U ...
... In March 2008, the industrial confidence indicator remained unchanged in both the EU27 and the euro area. Despite the downward trend observed since mid-2007, the level of the indicator still stands well above its longterm average. Among the large EU Member States, industrial confidence rose in the U ...
National income accounting:
... Some of the assumptions of this model are: Equilibrium in the goods market: Y = C(Y-T) + I(r=r*) + G + NX (real exchange rate) Equilibrium in the money market: M/P = L(r=r*,Y) Assumption 1: r is the real interest rate and r* is the real interest rate in the rest of the world. Assumption 2: The domes ...
... Some of the assumptions of this model are: Equilibrium in the goods market: Y = C(Y-T) + I(r=r*) + G + NX (real exchange rate) Equilibrium in the money market: M/P = L(r=r*,Y) Assumption 1: r is the real interest rate and r* is the real interest rate in the rest of the world. Assumption 2: The domes ...
Economics Paper-II
... Each question has four alternative responses marked (A),(B), (C) and (D). You have to select only one correct response and mark it in the OMR Sheet with blue ink ball pen. ...
... Each question has four alternative responses marked (A),(B), (C) and (D). You have to select only one correct response and mark it in the OMR Sheet with blue ink ball pen. ...
ECON 100 Tutorial: Week 21
... Keynes’ multiplier relates to the idea that an increase in exogenous (government) investment will increase incomes and saving, which will be reinvested. During a recession this can guide fiscal policy. A problem with the Keynesian idea of a multiplier can occur if there is inflation during a recessi ...
... Keynes’ multiplier relates to the idea that an increase in exogenous (government) investment will increase incomes and saving, which will be reinvested. During a recession this can guide fiscal policy. A problem with the Keynesian idea of a multiplier can occur if there is inflation during a recessi ...
Nation GDP GDP per capita
... allows them to compare GDP per capita—the amount of output per person in each nation. Use the link https://www.cia.gov/library/publications/the-world-factbook/rankorder/2004rank.html to answer the following questions: 1. Fill in the table below for each nation’s GDP per capita: ...
... allows them to compare GDP per capita—the amount of output per person in each nation. Use the link https://www.cia.gov/library/publications/the-world-factbook/rankorder/2004rank.html to answer the following questions: 1. Fill in the table below for each nation’s GDP per capita: ...
Why is the discount rate so low?
... increased by 20%, and then rounded to the nearest 2/10 of one percent. The underlying interest rates are referred to as “mid-term Treasury rates.” Short-term interest rates, in comparison, are considered to be the rates on Treasury obligations (notes, bonds, and bills) of less than 3 years. Short-te ...
... increased by 20%, and then rounded to the nearest 2/10 of one percent. The underlying interest rates are referred to as “mid-term Treasury rates.” Short-term interest rates, in comparison, are considered to be the rates on Treasury obligations (notes, bonds, and bills) of less than 3 years. Short-te ...
Fund or Die - Leasing News
... missing. He was told to track this paperwork down, but his superiors stonewalled. On occasion, this employee (who requested anonymity) saw documents being forged. If there was a page from an insurance company, for example, that needed signing,worker would, he said “forge a signature on it us! so the ...
... missing. He was told to track this paperwork down, but his superiors stonewalled. On occasion, this employee (who requested anonymity) saw documents being forged. If there was a page from an insurance company, for example, that needed signing,worker would, he said “forge a signature on it us! so the ...
Yes, r > g. So What?
... the best way to organize a society, as I do, these conclusions present a significant challenge. The first thing to say about Piketty’s logic is that it will seem strange to any economist trained in the neoclassical theory of economic growth. The condition r > g should be familiar. In the textbook So ...
... the best way to organize a society, as I do, these conclusions present a significant challenge. The first thing to say about Piketty’s logic is that it will seem strange to any economist trained in the neoclassical theory of economic growth. The condition r > g should be familiar. In the textbook So ...
9-Taxes-and-the-Economy-2013
... Benefits received principle – people benefit from the taxes they pay ...
... Benefits received principle – people benefit from the taxes they pay ...
Inflation Report February 2005
... (b) M4 is a broad monetary aggregate. Its principal components are the UK private sector’s holdings of sterling notes and coin, and its holdings of sterling deposits (including repos) with UK monetary financial institutions (MFIs). ...
... (b) M4 is a broad monetary aggregate. Its principal components are the UK private sector’s holdings of sterling notes and coin, and its holdings of sterling deposits (including repos) with UK monetary financial institutions (MFIs). ...
This Report discusses the finances of the Union Government in... 2002 and contains an analysis of the Appropriation Accounts of... UNION GOVERNMENT FINANCES AND ACCOUNTS : 2001-2002
... 6.80 per cent of Gross Domestic Product (GDP) while the revenue deficit constituted 4.81 per cent of GDP. ! The total receipts of the Union Government in 2001-02 amounted to Rs.1037,629 crore. The Government’s own receipts were Rs.342,500 crore constituting 35 per cent of total receipts. The balance ...
... 6.80 per cent of Gross Domestic Product (GDP) while the revenue deficit constituted 4.81 per cent of GDP. ! The total receipts of the Union Government in 2001-02 amounted to Rs.1037,629 crore. The Government’s own receipts were Rs.342,500 crore constituting 35 per cent of total receipts. The balance ...
IS-LM-BP
... demand for money, so r increases to r2 • For any given increase in y, by how much will r have to increase to restore equilibrium between Ms and Md? • The depends on how responsive Md is to changes in r • The higher the interest-elasticity of the demand for Money, the smaller the increase in r necess ...
... demand for money, so r increases to r2 • For any given increase in y, by how much will r have to increase to restore equilibrium between Ms and Md? • The depends on how responsive Md is to changes in r • The higher the interest-elasticity of the demand for Money, the smaller the increase in r necess ...
Fiscal policy and consolidation in Estonia Structure of the Presentation
... What has changed after consolidations? ...
... What has changed after consolidations? ...
5 S-R closed economy
... which would be sensible in a depression, the increase in Y would be as given by the simple Keynesian multiplier. If, however, the economy is close to full employment, the central bank would raise the interest rate, following a fiscal expansion, to forestall a possibly inflationary increase in spendi ...
... which would be sensible in a depression, the increase in Y would be as given by the simple Keynesian multiplier. If, however, the economy is close to full employment, the central bank would raise the interest rate, following a fiscal expansion, to forestall a possibly inflationary increase in spendi ...
Climate Change - Sensible Policy
... Adjustment Story: Chinese Revaluation • Real exchange rate initially appreciates – Over time prices rise less quickly and the real exchange eventually returns to base – Chinese GDP falls relative to base by 4% in the first year – Exports less competitive but domestic slowdown reduces imports • Trad ...
... Adjustment Story: Chinese Revaluation • Real exchange rate initially appreciates – Over time prices rise less quickly and the real exchange eventually returns to base – Chinese GDP falls relative to base by 4% in the first year – Exports less competitive but domestic slowdown reduces imports • Trad ...