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too big to fail? what are the ramifications?

Do you think banks can self regulate themselves? One would think that they should be held accountable for their mistakes but as we have seen, Uncle Sam came to rescue many of the banks for certain bankruptcy. What is the flaw with the government always bailing out banks or any firm for that matter?

Bailout of Firms by Government

Do you think the government did right to help bail out struggling firms? Should it help firms? Is there a risk for having the government bail out firms?

The Tools of the Monetary Policy

Is the Fed controlled by Congress or the executive branch of the government? What are the three tools the Fed has available to influence the economy? What can it do today to get the economy to recover?

What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?

In at least 300 words with a reference and an article, please help me explain What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? Please help me expla

Phillips curves and federal control of money supply

1. What is a Phillips curve? Assuming the economy's aggregate supply curve is stable, how would an increase in aggregate demand affect the unemployment rate and the inflation rate? 2. Consider this statement: "Banks do not create money because this is the Fed's responsibility". Do you agree or disagree? 3. What are some proble

Monetarists and Keynesian

1. Contrast the Keynesian and Monetarist views on how a change in the money supply impacts the economy?explain 2.Discuss the determinants of the equilibrium interest rate and how it may change.explain 3.Contrast the Keynesian and Monetarist views on the effectiveness of fiscal policy? explain

GDP, CPI and Unemployment

Use the table below: Value in billions Personal consumption expenditures $1000 Gross private domestic investment $500 Net exports $300 Imports $180 Government purchases of go

Current state of the economy

1) What is the inflation rate? Is inflation a worry, or are we in a period of stable prices? 2) What is the unemployment rate? Will a high unemployment rate cause deflation? What is the current structure of the labor market? How does the current structure affect the threat of cost push inflation or deflation? 3) What is th

Circular Flow Model, GDP, Business Cycles and Unemployment

Please help with the following questions. 1. Using the basic circular flow model, explain why the value of businesses' output of goods and services equals the income of households. Suppose the U.S. nominal GDP increases form one year to the next year. Can you conclude that these figures present a misleading measure of eco

Business and Consumer Expectations Concerning Monetary Policy

Explain why business and consumer expectations about the economy are more important when the Fed uses expansionary monetary policy then contractionary monetary policy. Be specific by explaining how monetary policy works to either increase or decreases GDP.

Aggregate Expenditure

What will be the impact on the equilibrium income and the interest rate if the federal reserve expands the money supply and the federal government has an expansionary fiscal policy?

New Loans Relative to Excess Reserves

Given this information, answer the questions below: Cash reserves = 5,500 Demand deposits = 100,000 The required reserve ratio is 5 percent. a.How much is the bank required to hold as reserves given its deposits are $100,000? b.How much are its excess reserves? c.By how much can this bank expand its loans? d.By how

Calculating percentage change in an index

The consumer price index is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price of a bundle containing 200 units of good X, 150 units of good Y, and 100 units of good Z in the years 2011, 2012, and 2013. Then answer

Transactions that contribute to GDP

Which of the following transactions would not be counted in GDP? Explain your answers. 2) American airlines merges with US Airways 3) Walmart's inventory decreases. 4) You buy 5 quarts of oil and change the oil in your car. 5) You make $200 from a garage sale 6) Subway buys cheese to make subs 7) You buy a new textbook 8)

Global Economy in 1998

See the attached file. 2. There are many views of the state of the global economy in the late summer-early fall of 1998. Below are some of these views. From your reading of Commanding Heights (Yergin and Stanislaw), current news accounts, research into various economies and Macroeconomics (Dornbusch and Fischer), critically a

Effect of an event on the U.S. economy

Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism about an expected economic expansion or downturn, increase in government spending on

Asian Economies 97-98 & 2008 Recession

Why did people believe the difficulties Asian economies were experiencing in 1997-1998 might bring a recessionary gap to the United States? In dealing with the recession of 2008, why is it important for the Fed and Congress to coordinate monetary and fiscal policy measures?

Macroeconomics Discussion

For the Portfolio Project, I am required to conduct an analysis of a recent article, less then 5 months old and provide an evaluation and outcome expectations in a written response that discusses: I need assistance first * Locating an article ( example) that would meet the criteria below: ***A minimum of three general ec

Opportunity costs - fixed or variable?

As a student, what opportunity costs do you confront by enrolling in University of Phoenix's MBA program? Does your organization or an organization with which you are familiar consider opportunity costs when evaluating strategic opportunities? For your organization, are opportunity costs fixed costs, variable costs, both, or nei

Corporate Finance Concepts

What concepts are shown in Corporate Finance? Which concepts are more prevalent in the business world today? How are the concepts incorporated in the day to day business?

Macroeconomics Questions (policy, laffer curve, MPS etc.)

Thank you for any help that you can provide. I've stated the questions below: 1. Describe the two key tools of monetary policy, and describe how they would be used by the Bank of Canada to implement a contradictory monetary policy. 2. The economy of Kenya is in recession, and the recessionary gap is large. The World Bank h

Excess Reserves and the Money Multiplier

Calculate the required numbers given the following information: (1) If the reserve ratio requirement is 5%, what is the money multiplier? ___________ (2) If the total deposits in the banking system are $250 million, what aggregate amount of dollars must be held by the Fed for all banks? ______________ (3) What is the a

Calculating Change in Spending

Given that the marginal propensity to consume (MPC) is .875: (1) What is the marginal propensity to save (MPS)? (2) Calculate the spending multiplier. (3) If the government stimulates the economy via new spending of $150 million: (a) What is the total projected spending that this could generate throughout the economy

Calculating Real Prices, GDP and Wages

Assume a basket of products cost $5 million in the base year and the following is true in 2012: The same basket of products cost $8 million in 2012 GDP = $14.4 trillion money wages = $96,000/year the price of gas = $2.80/gallon the money supply = $1.6 trillion Now determine the following and explain: a. Price Index

Implementing Pricing Strategies

Two companies, Company A and Company B, are deciding whether each should implement a new pricing strategy, which may or may not result in a price war. If both companies reduce (discount) their current prices, each company will end up with $175K in revenues for the month. If neither company discounts its current prices, eac

Using Charts to Show Profit Maximization

Create a chart that will show profit maximization for a perfectly competitive firm. Make up all the necessary data and formulas. Show how marginal revenue and marginal profit relate to profit maximization.

Finding real GDP

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year Real GDP (2000 prices) Population 1987 $6,435,000 million 243 million 2005 $11,092,000 million 296.6 million