What lag in discretionary policy is described in each of the following statements? Why do long lags make discretionary policy less effective? a. The time from when the government determines that the economy is in recession until a tax cut is approved to reduce unemployment. b. The time from when the money supply is increa
Three questions: Outline the Quantity theory of money and it's theory of inflation. What effect will deflation have on the economy? If the deflation is acute and lasts only a short time, how will the effect differ from deflation that lasts a long time and is gradual?
Suppose you have the option to receive $1000 every year starting next year, lasting for 20 years or to receive $2000 every year starting next year for the next 5 years with an interest rate of 5 % wich one is better. (show calculations as a fixed payment loan).
How do you expect an aging population will alter an economy's aggregate money demand function? Does it matter if there is simultaneous growth to the proportion of infants in the country?