assign4B

assign4B - ASSIGNMENT4BDuebeforeClassonMonday2/19...

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ASSIGNMENT 4B Due before Class on Monday 2/19 Do the Following: 1. watch the video clip 2. read the news headlines 3. read the explanations of hw4 questions that lots of people got wrong 4. review the big QUESTIONS FROM Assignment 4 5. have the application using economagic from assignment 3 in front of you 6. do the multiple choice hw4b which will test you on all of the above 1. Watch the video clip Warren Buffet on Buying Stocks (google it or ) a. How does Buffet decide which stocks to buy and how much to pay? Be prepared for a multiple choice question or two based on the above. 2. Read all of the following: 1. a. Based on the above, why was aggregate demand strong in the mid 1990’s – 2007? b. What does this have to do with the paradox of thrift? A Tough Market for Vice Vice historically has been a virtue in turbulent investment times, but the current recession might stretch the patience of the devil. Vice is off. Wholesalers Cut Inventory as Demand Keeps Falling U.S. wholesalers slashed inventories during December, adjusting to plunging demand in a deepening recession.
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Wholesale inventories decreased 1.4% compared with the prior month, dropping to a seasonally adjusted $427.5 billion, the Commerce Department said Tuesday. When demand falters, companies often try to avoid getting stuck with too much inventory, since an excess could translate into production cuts. That ultimately could mean layoffs that hurt the economy even more. U.S. Trade Gap Shrinks The U.S. trade deficit narrowed 4.0% in December to $39.93 billion, the smallest gap in nearly six years, as exports and imports both declined. The United States trade deficit narrowed by 4 percent in December, falling for the third straight month as overall trade dwindled in the face of a growing economic downturn. Chinese Exports Plummet in January By BETTINA WASSENER 12:43 AM ET The 17.5 percent decline from a year earlier was worse than most analysts had projected and could dash hopes that the downturn had bottomed out. Market Pans Bank Rescue Plan Treasury's Geithner promised action aimed at getting financing flowing through the economy, but the lack of detail got a poor reception on Wall Street. Inflation Down in China BEIJING -- China's consumer-price inflation continued to slow in January as producer prices fell, signaling a growing risk of price declines, though government stimulus measures are expected to help stave off any prolonged bout of deflation. Slowing for a ninth straight month, the consumer-price index rose 1% in January from a year earlier, the slowest increase in 2½ years, data issued by the National Bureau of Statistics showed. The producer-price index fell 3.3% in January, widening from December's 1.1% drop and marking a second consecutive
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assign4B - ASSIGNMENT4BDuebeforeClassonMonday2/19...

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