Economics 330 - Problem Set 2 Solutions
Note: For all the questions, please show all your work in detail.
1) How does the Segmented Markets theory explain the second fact about the term
structure of interest rates?
It does not! The theory implies that int
Economics 330 - Problem Set 2
Due Thursday February 12th (at beginning of class)
Note: For all the questions, please show all your work in detail.
1) How does the Segmented Markets theory explain the second fact about the term
structure of interest rates?
Economics 330 - Problem Set 3
Due Tuesday March 24th Thursday March 26th (at beginning of class)
Note: For all the questions, please show all your work in detail.
1) Problem 3.9, chapter 7, page 219 (problem 3.13, page 218 in 1st edition)
2) If you owned
Economics 330 - Problem Set 3 Solutions
1) Problem 3.9, chapter 7, page 219 (problem 3.13, page 218 in 1st edition)
a. The farmer would want to sell wheat futures. The farmer would sell 10 contracts. The
contracts in total would value (10 contracts 5,000
Economics 330 - Problem Set 1
Due Tuesday February 3rd (at beginning of class)
Note: For all the questions, please show all your work in detail.
1) If you deposit $500 in a savings account at an annual interest rate of 5%, how much
will you have in the ac
1. 2. 3. 4. 5.
ii) Bank reserves are liability of central bank. i) New financial instruments are not as liquid as M1, but still act like money. Broader aggregates enable us to consider instruments which are not M1. iii) It has no intrinsic value. It
Spring Term 2008. EC 330. Money Banking and Financial Markets. Problem Set 1. Please answer all the questions below.
1) Describe the neoclassical and the Keynesian theory of firm fixed investment. Identify the possible analogies between the two theo
EC 330. Problem Set 3. IS-LM model.
Please answer all the questions below and return the problem set on Tuesday April 15.
i)
Define the IS and explain how the IS is derived. (5 points)
ii)
Discuss what determines the position of the IS and its s
Amal Radia Econ 395 Assessable Set 4
Question Eighteen
Adam owns an asset that has uncertain value. Its value, however, is bound to be $100, $200, $300 or $400. In the absence of any relevant information, each of these values is deemed equally likely. If
EC 330. 4th Problem Set.
Please answer the questions below and return the problem set on Thursday April 24.
1) Analyze the effects of an expansionary monetary policy in the IS-LM model and in the AD-AS model and carry out a comparison between the t
1. 2. 3. 4. 5.
(4) Only the final good and services are taken into consideration to avoid double counting. (4) CPI includes all the goods which consumers in an economy are likely to buy regardless of the fact where the goods are from. (1) According
Economics 395 Topics in Risk and Uncertainty Homework Problems Answer Key Problem 1 In the town of Springfield, there are two taxi cab companies: Blue Taxi and Green Taxi. All Blue Taxis are blue, and all Green Taxis are green. Blue Taxi is a larger compa
Economics 395 Risk and Uncertainty Problem Set 3 Answer Key Question 9 Consider a set of monetary prizes, V = cfw_$0, $24000, $27500 and the following four lotteries over those prizes: 1 = (0.01, 0.66, 0.33) 2 = (0, 1, 0) 3 = (0.67, 0, 0.33) 4 = (0.66, 0.
Economics 395 Topics in Risk and Uncertainty Practice Questions Midterm Exam Fall 2008 Question One Anatole is given the choice between the following two lotteries: (i) Wins nothing with probability 0.54; loses $1000 with probability 0.46. (ii) Wins $100
Fall 2008. Problem Set 2. Money, Banking and Financial Markets (EC 330) Please answer all the questions below and return your answers Tuesday March 25th
1) Define a "market based" financial system and a "bankbased" financial system. Given exampl
Chapter 5
Externalities: Problems and Solutions
4/14/10
Externalities: Problems and Solutions
Chapter 5
5.1 Externality Theory 5.2 Private-Sector Solutions to Negative Externalities 5.3 Public-Sector Remedies for Externalities 5.4 Distinctions Between Pri
Economics 330 - Problem Set 5
Due Thursday April 30th (at beginning of class)
1) Problem 2.5 in textbook, chapter 15, page 482 (problem 2.8, page 475 in 1st edition)
2) Problem 2.7 in textbook, chapter 15, page 482 (problem 2.10, page 475 in 1st edition)
Frankfurts description of the unwilling addict, Adam, is that he has conflicting firstorder desires, which is the desire to do something or want something, whereas this something could be a drug. Adam is a person in which one of his conflicting first-orde
Lets assume that all of our events and actions are predetermined and intended to happen. This means that we are not free to follow through with our own judgments in any i nstances of our lives. We may think we can control our decisions, but really our dec
Review for Exam 1
Math 217, Fall 2002
General Thoughts
1. You will need to know the denitions and the theorems, but not because you will be asked to regurgitate them. For instance: (a) If you dont know what it means to be inconsistent, you wont be able to
Math 217, Linear Algebra, Fall 2002
Exam 1, October 4, 2002
Name:
Solutions
1.(5pts) Let A be a 6 5 matrix. What must a and b be in order to dene T : Ra Rb by T (x) = Ax? If we are trying to compute Ax then x must be a length 5 vector. The result of Ax is
Econ 435 Fall 2009 Practice First Midterm 1. Which of the following statements is true? A. A business entity operated and taxed like a partnership, but with limited liability for the owners is called a limited liability company. B. The primary goal of fin
Physical Sciences Division University of Toronto at Scarborough
MATA04Y TERM TEST I November 7, 1997
Part A 32 points] (40 minutes)
8] 2] 3] 1] 3] 3]
3] 2]
1] 1] 1]
1. State carefully the eight properties of vector addition and scalar multiplication in Rn
Physical Sciences Division University of Toronto at Scarborough
MATA04Y
Solutions to Term Test I
1997/98
Part A
1. For all real numbers r; s 2 R and all vectors u; v; w 2 R the following eight conditions hold A1. (u + v) + w = u + (v + w) A2. u + v = v +
According to Joel Feinberg, in Reason and Responsibility, the theory of agency is the view that although human behavior is caused, not every chain of causes and effects are infinite; some causal chains begin with agents themselves. For example, the agent