Week 7B Questions
Answer at least five out of the following questions by posting in the Assignment box (not in
the discussion board).
1) When the economy is close to or at full employment (which is the current state of the US
1) "A balance of trade deficit must always be offset by net capital inflows from
abroad." Agree or disagree with this statement and explain.
I have to agree with the above statement because to finance the trade deficits, foreigners must
acquire more of ou
1) What policy rule do monetarists believe the Fed should follow? What are the major
assumptions underlying this policy prescription?
The policy rule that monetarists believe is that the Feds should follow steady growth of the
1. According to the Federal Reserve (as explained in the testimony), when prices rise 2% or less
there is a favor for development in the economy. This mild inflation has prospects that prices will
increase and keep increasing. This then le
of successful settlement/resettlement. Work provides the income
that people need to live satisfying and full lives (including access to
good accommodation and opportunities to purchase properties).
Being part of the working population also links people i
an indirect effect, economic convention obliges us to classify it
separately as an induced effect. Standard Chartered Ghana creates
economic output directly by hiring workers, paying taxes and
purchasing goods and services from the local economy. In 2009,
THE RESETTLEMENT OF THE KAREN COMMUNITY IN NHILL A joint
AMES and Deloitte Access Economics Report 27 2 LOCAL CHAMPIONS,
INFLUENCERS Strong leadership and support for the new settlers from
local champions who have influence within the local community is
facilitates over 37,000 transactions per month, more than 65% of
which are on behalf of customers outside Ghana. In 2009, Standard
Chartered Ghana made a net profit after tax of USd 40.7 million. Its
dividend for the year (paid out in 2010) was USd 33.6 m
government agencies the bank makes credit available to workers
earning above USd 170 a month. through these loans, which average
USd 1,500 over 36 months, Standard Chartered Ghana continues to
play an important role in financial deepening. also part of it
then transformed into value-added (e.g. by transforming raw
materials into finished products) and employment, through the
companies own operations and through those of their suppliers. 3.
finally, as a subsidiary of an international banking group, Standar
depend upon Cocobods advance purchases of their crop. 3.2.1
wholesale banking Client segment financing from domestic savings
(USd million) financing from foreign savings (USd million) Total
financing (USd million) Small & medium-sized enterprises 17.2 17.
Standard Chartered Ghana is far from just a wholesale bank. Its
consumer banking area manages the savings of more than 156,000
individuals, out of an estimated 3.5 million people in Ghana with bank
accounts. at year end 2009, Standard Chartered Ghanas dep
to the figure for total onshore loans indicated in exhibit 5.
Manufacturing and trade are the two sectors where most valueadded is created. the small amount of financing to the agricultural
sector explains the low value-added there. exhibit 6 shows a
1) Explain why the Aggregate Supply curve becomes increasingly steeply sloped at levels of
RGDP near "full employment" and becomes especially steeply sloped beyond "full
employment" RGDP (hint: this topic is not discussed in your text. you will need to
1) On October 29, 2014, the members of the Federal Open Market Committee (FOMC) of
the Federal Reserve Board voted to maintain its federal fund target within the same range
of between 0.25% basis points to 0% percent, as it was set by the FOMC in August
1) The Economy cannot be considered fully employed unless the measured unemployment
rate is below 1%. Agree or disagree and explain your answer in a paragraph. What is the
current actual u-rate for the US economy? 4pts
I have to disagree with the above st
Please post your responses to WK6A questions here. Answer at least 5 questions from the
list to get a maximum of 10 points.
1) The Federal Reserve System is structured in such a way as to insulate monetary policy
from the political pressures characteristi
2) Explain carefully why an initial change in aggregate demand will shift the aggregate
demand function by a multiple of the initial change in output.
An initial change in aggregate demand will shift the aggregate demand function by a multiple of
ECON2020: Economics II
HW7 Questions: Suggested Answers in Blue
1) When the economy is close to or at full employment why is it difficult for the Fed to decide
whether or not to change its interest rate target in the federal funds market?
a. An increase in price level will decrease the real value of household wealth and
increase the interest rates. There will be a decrease in the consumption and investment.
This will result in a decline in the c
Growth rate of real GDP in 1991 = (8,015 -8,034 / 8,034) * 100 = -0.24
Growth rate of real GDP in 1992 = (8,287 -8,015 / 8,015) * 100 = 3.39
Growth rate of real GDP in 1993 = (8,523 -8,287 / 8,287) * 100 = 2.85
Major Push by White House to Increase Computer Science Skills
The White House announced on Saturday a $4 billion proposal to make computer science a
new "basic skill."
The funding will be included in President Barack Obama's forthcoming fiscal 2017 budget
Stock Price 100.00
Tesla Motors was founded in 2003 by a group of engineers including JB Straubel, Martin
Eberhand, Ian Wright, Marc Tarpenning, and Elon Musk, the current CEO. Teslas engineers first
A multi-national corporation.
A provider of agricultural products.
Produces herbicides (round-up) for the residential market.
Products: Herbicides, fertilizers, GMOs (Genetically modified organisms), &
rBGH (growth hormone for cows).
Iran, China agree $600 billion trade deal after sanctions
Iran and China agreed to expand bilateral ties and increase trade to $600 billion in the next
10 years, President Hassan Rouhani said on Saturday during a visit to Tehran by Chinese
President Xi Ji
Fiscal Policy is the use of government spending and taxes to influence the nations
output, employment, and price level. If I were President of the U.S. and wanted to expand the
economy, I would increase government spending and decrease taxes so citizens w
Sweden is an export-orientated mixed economy. It has a population of
9.6 Billion and is apart of the European Union. As of 2015 Swedens GDP is
$570.59 Billion (USD) and its growth rate as of July 2015 is 3.3%.