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Economic Growth

Investing Questions

A. In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be? b. What is the bond equivalent yield of a T-Bill that is selling for $9,453 and has 173 days remaining until maturity? 2) You purchased 10

How the reserve requirement affects economic growth.

Banks fail when all depositors try to withdraw money at the same time. One way to prevent this problem would be to require banks to hold 100% of deposits on hand. Why would this not be a desirable thing to do? What would happen to the banking system? What would you expect to see happen to the cost of a checking account if banks

What are the four stages of the Business Cycle?

2) What are the four stages of the Business Cycle? Compare and Contrast five internal and external Business Cycle theories. Prepare a diagram showing how the movement in any combination of the components of GDP (Gross Domestic Product) can lead to business cycles. What is the relationship between and among the U.S. nat

Marcoeconomic Questions

A. Why does borrowing short and lending long present a potential problem for banks? b. What are two effects that a government guarantee of financial institutions can have and why? c. After a major storm cash held by individuals has increased. Should the Fed buy or sell bonds and why? d. How does the distinction between nomina

How lower interest rates affect the economy

Suppose that the Federal Reserve acts to lower interest rates. How this will affect the U.S. economy? After the economic slowdown that started around the third quarter of 2000, the Fed lowered interest rates eleven times in the following year, 2001. What concerns would have about the effort by the Fed to smooth out this econo

Compare and contrast GDP forecasts

This is part of a paper I'm doing on six different economic indicators, I just need help with the Real GDP part. 1.Compare and contrast the two different forecasts for REAL GDP (attached) 2. Include a reconciliation of the differences between the forecasts and a rationalization for which forecasts you believe are most ac

Effect of fiscal policy on trade imbalance

Suppose a country has been running a significant expansionary fiscal policy for many years. Monetary policy has not been particularly expansionary or contractionary. What can you expect to happen to this country's trade balance? What are the costs and benefits of this trade imbalance? If the country wished to correct for its tr

Budget deficit/surplus

One alternative to balancing the budget annually or cyclically is to produce a government budget that would be balanced if the economy were at potential output. Given the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle?

Economic DQ's.

Q.1. In most developing countries, there are long lines of taxis at airports, and these taxis often wait two or three hours. What does this tell you about the price in that market? Discuss using supply demand analysis. (200 to 300 words) Q.2. In the mid 1990s, Japan's annual money supply growth r

U.S. economy

1) How does the trade deficit impact the U.S. economy? 2) How do changes in exchange rate affect a federal government organization? 3) Is a strong U.S. dollar always good for the U.S. and global economies? Why or why not?

Oil Prices' Effect on Supply and Demand

Since fall of 2004, rising oil prices (over $70 per barrel in the Spring of 2006) have frequently ended stock market rallies and led to declines in all major stock indexes. Draw an AS/AD diagram which shows the effect on the US macroeconomy of oil at $70+/barrel versus oil at $40/barrel. Label your diagram clearly and expla

Productivity and growth

How does government policies affect the role of this factor in the economic growth process.(The four factors.)

Tracking capital movement

Briefing on the question of whether capital generated in the industrialized countries is finding its way to the less-developed and emerging markets according to the Old World bank and OECD and others

Recession and Expansion

1) Explain what a recession is. 2) Explain what an expansion is. 3) Explain what Disposable Income is. 4) Explain what an endogenous variable is. 5) Explain what an exogenous variable is. 6) Explain what an "autonomous" component is 7) Explain why I= S is an equilibrium in the goods market. 8) Explain the paradox of the T

Valuation Analysis

Good day; I need your assistance with the attached files for verification purposes. The instructions for the EXCEL file"Beta Hotel" is attached as a word file. There are 2 excel files and one word file. A pdf file is required as well, however, I could only upload three files. However, the link for the required pdf file (S

I need help with GDP problem

1. You have the following data for a developing country (in thousands of dollars). Calculate each sector's value added and the country's GDP. Name Total Intermediate Value GDP Output Inputs Added Agriculture $15,000 $ 7,000 $_____ Mining 9,000 4,000 ______ Textiles & Apparel 3,000

Global capital investment, emerging versus industrialized countries

Q1) Major multinational organizations such as Acme (some of which are listed below) attempt to track the relative movements and magnitudes of global capital investment. Using these web pages and others you may find. European Bank for Reconstruction The Old World Bank OECD Prepare a 5-6 paragraph executive briefing o

General healthcare ecomonics

Hello BrainMass OTAs, I need your help on three attached essay questions on basic healthcare economics. Use only the attached material to answer the questions. At the end of each question there is a associated chapter.

The Economic Value Added

California Electric has a cost of equity capital of 16 percent. The firm has consistently been authorized a return on equity capital below this cost. Also, the effects of regulatory lag and attrition have further reduced the realized return to the 13-percent range. If the utility expects this problem to continue, what actions wo

Accounting costs, profits, Economics profit

(A). A potential entrepreneur is trying to decide whether to open a new health spa. She presently makes $35,000 per year as an aerobics instructor and will have to give up this job if she opens the new spa. If she chooses to open spa, it will cost her $200,000 per year in rent and other operating expenses. 1. What are her accou

Trends of economy

1. One of the most variable componetns of consumer spending from year to to year is spending on durable goods, especially new automobiles. Why do you think this is so? 2. What do the statistics on (web address) indicate about the direction of the economy after 2000 for: a) Money GDP and Real GDP (

Forecast - General Motors

Below here is some information I have in regards to a Decision Tree Analysis as well as a Time Series - You can see this below ... How can I find General Motors (GM) information to relate to these 2 sections? How can I expand on what I'm trying to explain below w/ GM information? II Decision tree analysis is attempted to

International Monetary Relations

I'm working on my MBA and I need to have an idea of how should I start developing the work, please provide guidance. The media and others suggest that the current account deficit run by the U.S. is a problem for the economy. What do you think? What action(s) would you advise federal government officials to take on this issue