Suppose the aggregate earnings of the companies that are part of an index fall more than the price of
the index (which is an aggregation of the stock prices of these same companies). Which of the following
statements is/are true?
The index is now more
Which of these goals is/are typically part of a central bank's mandate?
Maintaining price or currency stability
Guaranteeing gender equality in terms of wages
Maintaining healthy public finances
Providing financial aid to developing countries
The Fed increased the supply of US dollars at an average rate of 6 percent per year over the 1980-2005
period. Based on the theory of production capacity, if the Fed had instead increased the money supply at
the rate of 7 percent per year during that p
Earning a college degree has some well-known and well-documented advantageous impacts on an
individual. That is the motivation for people to delay their entry into the workforce for four or five
years while they earn a baccalaureate degree. However, studi
Central banks have perfect control over the money supply in their economies.
The nominal interest rate is a better measure of the opportunity cost of holding money than the real
interest rate because in addition to the real intere
When do net exports rise?
When current aggregate income declines
When the real exchange rate declines
When foreign income rises
All of the above
None of the above
In the short run, when prices are sticky and the goods market is in equilibriu
The interest parity condition (US and Uganda comparison)
Given; i$ =0.45, iugx =0.1798, e=3374.46ugx/$
Using the IP condition, (1+ i$)ee = (1+ iugx)e, where i$ is the dollar interest rate, iugx is the Ugandan
shilling interest rate, e is the current excha
The price of one Indian rupee (INR) in terms of Australian dollar (AUD) is 0.02. If the price of a basket of
goods is INR 50,000 in India and AUD 2000 in Australia, then the real exchange rate of the rupee vis-vis
the Australian dollar (treating the ru
The unemployment rate in India has shown a slight increase to 9.4% in 2009 from 8% in 2007. Thereafter
it remained constant in the next year. But shown a steep decline of 6.3% in 2011, then 5.2% in 2012 and
then 4.9% in the year 2013. So at an overall lev
Suppose the price level in the US is 150 while the corresponding price level in the UK is 100. If the
nominal exchange rate is E=2/3/$, what is the real exchange rate between the US dollar and the British
pound (that is, how many baskets of British goo
In 2015, the average nominal wage rate in country A went up by 1% and the rate of inflation was -2%.
The real wage rate growth in 2015 in the country must have been approximately _.
Over the past three decades, the real GDP of the U
On April 16, 2012, the President of Argentina introduced a bill for the re-nationalization of the country's
largest energy company, YPF. In more concrete terms, Argentina expropriated the shares that a foreign
investor (Repsol) held in the company.
Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than
current inflation and output gaps because:
It wants to avoid time-inconsistency problems.
It takes time for the central bank to implement its policy dec
In macroeconomic analysis, why does one have to distinguish between consumption and investment
Consumption expenditure is included in GDP, but investment expenditure is not.
Investment expenditure is included in GDP, but consumption expen
Question 1: What kind of study (e.g., experimental, observations, time series, cross sectional) is this?
This is an experimental study because the research required the study participants to change something
they were doing based on rules from those condu
Why Organizations Dont Learn
By Francesca Gino and Bradley Staats
In general, I liked recommendations in the article, but I also found them too nice to implement in a real
corporate world since managers prefer to be pragmatic focusing on improving service
Write a memo to Warren Buffet the billionaire investor and Chairman of Berkshire Hathaway and
make a recommendation on whether he should increase or decrease his investment in CocaCola
(Berkshire Hathaway currently holds a little under 10% of Coca Colas s
The Fed will likely reduce the money supply in the US, this will decrease the liquid money
available in the market, which will increase the interest rate, and as a result of changes in the
level of income this will cause the LM curve to move upward and ma
Suppose youre evaluating a job candidate to lead a new office in a different country. On paper
this is by far the most qualified person youve seen. Her responses to your interview questions
are flawless. She has impeccable social skills. Still, something
Composition, participation, and influence are the three key parameters that could limit the group
decision-making and cause process loss. In this case, when this crisis happened, the leader should first
ask all the survivors (comprehensive inclusiveness)
Observational since the researchers only observed people's exercise behavior and didn't control it in any
Time series data since the behavioral data was collected over a period using ongoing surveys.
Both studies created several strata based on amo
-Consider the case of a pharmaceutical company that discovers a drug that can cure a disease
prevalent in Africa. Suppose this drug is projected to provide very low economic returns if the
pharmaceutical company distributes the drug in Africa.
McGahan's article, How Industries Change, discusses that industries evolve along four different paths;
radical, progressive, creative, and intermediating. These trajectories are defined by two types of threats
of obsolescence. The first being a threat to