ACC 210 - SPRING 2005
1. Fill in the information requested at the top of this page. Fill in your name on the answer sheet
2. Enter all answers on the answer sheet provided but do NOT make extraneous marks on the
1. (7 points) Explain how institutions can promote economic growth. You may use an
example to assist you.
2. (9 points) Macroeconomists are often concerned with the capital-labor ratio. This ratio is
the amount of capital
In-Class Assignment #2
1. Consider two nations: England and France. These nations are similar with regards to
population size and age, income and wealth, and time preferences.
a. Knowing the above information, what can you say about interest rates,
How is the US debt situation today different than in other parts
of its history?
What is the inflation tax? How does this help to fund the
federal government? What are TIPS?
Why are governments always tempted to print money? Why
cant Greece inflate its w
and the Wealth of
Lecture # 7
By the end of this section, students should be able to:
Discuss how economists measure economic growth
Mention some historical facts regarding economic growth
Lecture # 6
By the end of this section, students
should be able to:
Identify several financial securities
Calculate the price of bonds
Describe how default risk impacts the interest
rates of bonds