correlated stocks to the portfolio, thus outweighing the positive correlated stocks. This will help to bring the positively correlated stocks into negatively correlated stocks. 2) What macroeconomic variable do you believe has the greatest impact on interest rates? Inflation? Briefly explain. The greatest macroeconomic variable to impact both interest and inflation is money supply. An increase in money supply causes inflation and to try and control inflation the Federal Reserve raises or losers the
Words: 592 - Pages: 3
actually very narrow. A journal devoted to Keynesian economics is therefore needed, both to correct this narrowness and because events have once again confirmed the profound relevance of Keynesian theory. Reflection upon the intellectual history of macroeconomics over the past 75 years can help to understand the current predicament and need for this new journal. That
Words: 1862 - Pages: 8
Macro Midterm Exam #1 1 List the two key differences between microeconomics and macroeconomics. 2 List the two key characteristics of the scientific method. 3 List the three differences between GDP deflator and CPI. 4 Why neither CPI nor GDP deflator measures the changes in the cost of living accurately? 5 Write a Cobb−Douglas production function for which capital earns 1/3 of total income, and show its profit in a competitive market. 6 Show in a diagram to explain what happens
Words: 324 - Pages: 2
Economics Basics: Introduction Economics may appear to be the study of complicated tables and charts, statistics and numbers, but, more specifically, it is the study of what constitutes rational human behavior in the endeavor to fulfill needs and wants. As an individual, for example, you face the problem of having only limited resources with which to fulfill your wants and needs, so, with your money, you must make certain choices. You'll probably spend part of your money on rent, electricity
Words: 4747 - Pages: 19
____________________________________________________________ ________________ (I) Economics Core (5 courses; 15 credits) Take ALL of the following courses: (A) Econ 7000X [700x](Option 2 and Option 3 students may take Busn 7206X [706X] -“Microeconomics for Business Decisions” -- in lieu of Econ 7000X), (B) Econ 7010X [710X], (C) Econ 7025X [725.1], Option 3 students only who took an undergrad course in calculus may, with permission of the Grad. Deputy, waive Econ 7025X and substitute a course
Words: 567 - Pages: 3
At the macroeconomic level, FDI enables countries to have a good foreign exchange constraint thus allowing flexibility in the current account deficit. In addition, FDI leads to stable process and foreign exchange markets leading to increased employment opportunities
Words: 717 - Pages: 3
Unit 1 Assignment Student Name: Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed. 1. Determine whether each of the following is primarily a microeconomic or a macroeconomic issue: i. Setting the price for a cup of coffee. ii. Measuring the impact of tax policies on total household spending in the economy iii. A household’s decision regarding whether or not to go on vacation iv. A worker’s decision
Words: 308 - Pages: 2
A. Terms of Trade The relative price of exports in terms of imports and is defined as the ratio of export prices to import prices. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods. An improvement of a nation's terms of trade benefits that country in the sense that it can buy more imports for any given level of exports. A deteriorating TOT would mean import prices rise relative to export prices. Lower results generally indicate that there is
Words: 1855 - Pages: 8
Question 1. :-Define economics? Answer:-It is the study of allocation of resources available to organization or business. It is fundamentally concerned with the art of economizing i.e. making rational choice to yield maximum return of output in minimum resources & efforts by selecting best alternative course of action among various. Question 2. : - Contraction and extension of demand? Answer:-A variation in demand implies “extension” or “contraction” of demand. When with
Words: 17527 - Pages: 71
(the ‘no free lunch’ principle): • Although we have boundless needs and wants, the resources available to us are limited. Consequently, having more of one good thing usually means having less of another. Microeconomics • The study of individual consumer, firm and market behaviour Macroeconomics • The study of the aggregate economy Economic decision • Any decision where securing something of value means going without some other thing of value The cost–benefit principle • Economists choose among
Words: 253 - Pages: 2
