eCON 104 HW 4 - NAME_Farious Ressom [email protected] ECON 104 EMAIL_fjr50Date Due Tues 11/3 HOMEWORK 4 This assignment is due at the beginning of class on

eCON 104 HW 4 - NAME_Farious Ressom [email protected] ECON 104...

This preview shows page 1 - 3 out of 6 pages.

NAME _Farious Ressom___________________________ EMAIL:_fjr50- [email protected]___________________ ECON 104 D ate Due : Tues, 11/3 HOMEWORK 4 This assignment is due at the beginning of class on Tuesday , November 3. It is worth 12 participation points. No late assignments will be accepted. If you cannot make it to class on Tuesday , please have a friend or classmate drop it off at the beginning of class on 11/3. If you have to be out of town, you can pass it in early (on 10/27, 28, 29) during office hours. Instructions: This assignment must be typed. Graphs can be filled in by hand . You can work together; however, you are expected to write up your answers in your own words individually. Please be as brief as possible. I have given you a rough guide in terms of number of sentences—we will not be counting the number of sentences you write. Please read, “Stocks Rally Out of Correction Territory on Latest Central Bank Boost” , Paul Vigna, WSJ, October 23, 2015, posted in the Exam 2 materials folder. 1. Suppose the European economy is at E 1 (Q 1 , 2%). . Using the graph below, illustrate how actions by the European Central Bank (ECB) to lower interest rates (i.e., increase the money supply) later this year will impact real interest rates in Europe. Mark the new equilibrium, E 2 , and the new quantity, Q 2, and real rate, r, at E 2 . (Make up the new r.) European Loanable Funds Market 2% Q 1 Supply Demand E1 Real Interest Rate, r Loanable Funds ($Billions)
Image of page 1
1a.
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 6 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors