Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should A. reduce the discount rate by 3 percentage points B. reduce the discount rate by 10 percentage points C. raise the discount rate by 3 percentage points D. raise the discount rate by 10 percentage points 6. In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because A. the country eventually will consume more and produce less B. the country eventually will
As a result, the quantity and price of good A increase. a. Compute nominal GDP in the base year and later year. b. Compute real GDP in the base and later years (in base-year prices). c. Compute the GDP deflator in the later year, using your answers to parts a and b. d. Compute a fixed-weight price index for the later year, using the base-year quantities as weights. e. Which price index rises faster, the GDP deflator (Paasche) index or the fixed-weight index (Laspeyres) index 1 Question 3 (20 marks) .
of Reagan’s tenure, the budget deficit was $141b. The federal government being able to collect more revenue as an ultimate result of the lowered taxes is a main goal of supply-side economics. In the 1980s, federal revenue grew from If measured as a share of GDP, By the
We would consider the following fiscal policies: * Reduction of defense expenditure. Taking a look at Exhibit 7 we see that this % has been rising in the last 13 years. Try to reduce this % increasing the exports of defense material to its allies. USA should try to reduce the amount of money spent in defense selling more material to the allies that would be considered as exports helping the trade balance. * Promote middle class.
Trident University Macro-Economic Indicators: GDP, CPI, Unemployment, Interest Rates TAWANNA J. RICHARD ECO202 MODULE 2 Cases Dr. Canarella GDP 1. Y= C+ I+ E+ G 1750= 1,000+ 200+ 300+ 250 2. If we increase our domestic energy production, and imported less oil from foreign countries the GDP would raise extremely high due to no out sources. Inflation 1. ((111-106)/106)*111 111-106=5 5/106= 0.0471 0.0471*111= 5% 2.
Let (R/P)1 equal the initial value of the real rental price of capital, and (R/P)2 equal the final real rental price of capital after the labour force increases by 10 percent. The rental price increases by The real rental price also increases by 6.9 percent. Let (W/P)1 equal the initial value of the real wage, and (W/P)2 equal the final real wage after the labour force increases by 10 percent. The real wage increases by The real wage decreases by 2.8 percent. c) Using the same logic as (b) So, output increases by about 3 percent.
A. A $40 billion increase in government spending B. A $20 billion tax cut and $20 billion increase in government spending C. A $10 billion tax cut and $30 billion increase in government spending D. A $40 billion tax cut 6. In an economy, the government wants to decrease aggregate demand by $48 billion at each price level to decrease real GDP and control demand-pull inflation. If the MPS is .25, then it could: A.
They also faced increased operational expenses of selling, general, and administrative costs by 0.49%. Perhaps the biggest impact on their profit margin is the cost of revenues that were associated with their sales, an increase of 0.92% which affected their EBITDA (Earnings before Interest Tax Depreciation and Amortization). Overall, these show operating expenses as a key issue for the company as the operating income shrank by 2.72% in just a two year period. When analyzing the whole foods balance sheet in common size it shows they have been reducing their short term debt. In 2007, they reduced their current installments of long-term debt by 0.76%, accounts payable by 1.61%, and other current liabilities by 1.35% in just a year as portion of their Liabilities and Shareholders’ Equity.
C/C 2008 - Compare the emergence of nation-states in nineteenth-century Latin America with the emergence of nation-states in ONE of the following regions in the twentieth century. • Sub-Saharan Africa • The Middle East CCOT 2007 - Analyze continuities and changes in nationalist ideology and practice in ONE of the following regions from the First World War to the present: • Middle East • Southeast Asia • Sub-Saharan Africa C/C 2007 - Compare the historical processes of empire building in the Spanish maritime empire during the period from 1450 through 1800 with the historical processes of empire building in ONE of the following land-based empires. • The Ottoman Empire OR • The Russian Empire CCOT 2006 - Analyze continuities and changes in the cultural and political life of ONE of the following societies. • Chinese, 100 CE to 600
Using a dynamic simultaneous equation to investigate the contemporaneous and lead/lag relations between markets over the year of 1972, 1980 and 1987, they find evidence of increasing market interdependence, particularly within the geographical region, over time. They also find an increasing influence of Japan stock exchange to compete with that of USA. Lee and Kim (1993) investigate the influence of the October 1987 crash on the co-movements among weekly returns of 12 stock markets using factor analysis over the period from August 1984 to December 1990. They show that stock markets became more interrelated after the crash and this strengthening relation continues for a longer period after the crash. Loretan and English (2000) examine the contagion effect for equities, bonds and foreign exchange following Mexican crisis in late 1994.