| | | | | | | | | | | | | | | Question 1 | 0 out of 1 points | | Which of the following could lead to a bank's failure, even if the bank has positive net worth? | | | | | Selected Answer: | A bank with positive net worth cannot fail. | Correct Answer: | Most of the bank's assets are illiquid. | | | | | Question 2 | 1 out of 1 points | | The three most important sources of economic growth are | | | | | Selected Answer:
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The dynamic interactions between monetary policy and asset prices have conventionally been examined in terms of the asset price channel of transmission of monetary policy, given the pre-crisis analytical consensus against the use of monetary policy to respond directly to asset price inflation. In the post sub-prime crisis period, however, there has been an overwhelming intellectual support for revisiting the issue of whether monetary policy should become more sensitive to asset price trends and respond
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A. Introduction The module is divided into 2 parts, each of which will be discussed over the course of one semester: Microeconomics (ECON 1111) and Macroeconomics (ECON 1211). Microeconomics studies individual decision-making by both consumers and firms and also how they interact in individual markets. Macroeconomics studies the economy as a whole, i.e., it studies economy-wide phenomena resulting from group decision-making in entire markets. This distinction will become clear as we proceed with
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Term Paper .Economics is used in almost all aspects of life. It is about the choices and decisions we make. An understanding of economics will show how to live and exist in the world today and help us understand how the business world works. As the concept of economics is discussed, many terms are used to describe how economics works in the world. There terms will be defined so that they are better understood throughout the discussion of the economy and market demand. The terms Gross Domestic
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Keynesian Economics: Tax-cuts and Spending Merriam-Webster defines Keynesianism as “that advocacy of monetary and fiscal programs by government to increase employment and spending (Keynesianism, 2012).” Investopedia gives a similar definition stating that Keynesian economics is “An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability (Keynesian, 2012).” Basically, economists that believe
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Introduction: The Economic reforms currently underway in India represent both continuity and a break with India's post-independence development. Its main objective is to restore sustained high growth to alleviate poverty and raise the standard of living. Development of Thought: Changes in the policy packages towards deregulation, liberalization and opening up of the economy were initiated in the late 70s and early 80s but it was not until 1991 that major economic reforms were undertaken. The major
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As the senior President advisor, I will advise President to take 4 actions: 1. Lowering interest rates, 2. Reducing taxes, 3. Increasing government spending in specific target only, and 4. Buying bonds. However, all these actions may have side effect. For lowering interest rates, this will eventually attract more investors to invest into production, reducing unemployment rate along the way, and encourage consumption, but President must aware there is high chance this will affect the whole
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Why the U.S.’s deficit, surplus and debt have an effect on a domestic automotive manufacturing (exporter) and The United State’s financial reputation on an international level The United States financial reputation on an international level The new economic cycle; 2000 to 2001 the United States economy has gradually dropped. This dropped occurred before September 11, 2001 terror attack and continued during the international financial crisis. The United States is struggling with the fundamental
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Recent Work on Business Cycles in Historical Perspective: Review of Theories and Evidence ABSTRACT This survey outlines the evolution of thought leading to the recent developments in the study of business cycles. The subject is almost coextensive with short-term inacrodynamics and has a large interface with economics of growth, money, inflation, and expectations. The coverage is +-)y.Pry' kg4h v4r 4 ii4 c,1 ,i4 4 tT The paper first summarizes the "stylized facts" that ought to be explained
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Questions: 2. What assumptions cause the intermediate-short-run aggregate supply curve to be horizontal? The assumptions are that prices are flexible and wages are fixed. Why is the long-run aggregate supply curve vertical? The AS curve is vertical at the full-employment level of real GDP. Also, because wages and other input prices rise and fall in order to be in line with price changes. Explain the shape of the short-run aggregate supply curve. The unsloping aggregate supply curve AS indicates
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