Business, 12.12.2019 03:31 andrewmena05
Afinancial crisis: suppose the economy starts with gdp at potential, the real interest rate and the marginal product of capital both equal to 3%, and a stable inflation rate of 2%. a mild financial crisis hits, that raises the risk premium from zero to 2%.
a. analyze the effect of this shock in an is/mp diagram.
b. what policy response would you recommend to the federal reserve? what would be the effect of this policy response on the economy?
c. how would your answer to part b) change if the financial crisis were very severe, raising the risk premium to 6%?
d. what other policy responses might be considered in this case?
Answers: 1
Business, 22.06.2019 00:10
What are the forecasted levels of the line of credit and special dividends? (hints: create a column showing the ratios for the current year; then create a new column showing the ratios used in the forecast. also, create a preliminary forecast that doesn’t include any new line of credit or special dividends. identify the financing deficit or surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new line of credit or special dividend.) now assume that the growth in sales is only 3%. what are the forecasted levels of the line of credit and special dividends?
Answers: 1
Business, 22.06.2019 21:40
Which of the following is one of the main causes of inflation? a. wages drop so workers have to spend a higher percentage of income on necessities. b. demand drops and forces producers to charge more to meet their costs. c. rising unemployment cuts into national income. d. consumers demand goods faster than they can be supplied.
Answers: 3
Business, 23.06.2019 00:50
On january 1 of the current year, jimmy's sandwich company reported owner's capital totaling $128,000. during the current year, total revenues were $106,000 while total expenses were $95,500. also, during the current year jimmy withdrew $30,000 from the company. no other changes in equity occurred during the year. if, on december 31 of the current year, total assets are $206,000, the change in owner's capital during the year was:
Answers: 3
Afinancial crisis: suppose the economy starts with gdp at potential, the real interest rate and the...
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