Need Help with International Macro

2. A 1991 The Wall Street Journal cover page article entitled "Foreign Rate Increases May Worsen Slump" explained how the German central bank raised domestic interest rates in order to reduce inflation below the 3% level. At the same time, the U.S. central bank reduced domestic interest rates to fight the deepening recession in ...continues

Need Help with Int'l Macro

1. At the end of 2004, the gross federal debt was approximately $7,500 billion, and it is highly likely that it will grow much larger during the coming decade. Many people are concerned that the government could go bankrupt and that the U.S. economy could face severe consequences. Under what conditions can a government go bank ...continues

Simple Problems - Need help understanding why

Macro - inflation, M2 money supply - multiplier, purchasing power of parity, FX. Need help in next three hours

Macro Questions: Balance of payments, Budget deficits and Unemployment.

Suppose were in a conversation with colleagues who were attacking U.S. government (i.e., Bush Administration) policies because of its rising budget deficits. Explain how you should respond to each of the following statements by your colleagues. In other words, explain whether you agree or disagree with these statements. 1. " ...continues

3 sector model - help understanding changes

I've attached a model and what I think will happen in China. Need help to figure out Japan. Please help me understand why they are moving. Need help in three hours.

residential investment

explain the impact of an increase in the supply of housing on the relative price of housing and the flow of residential investment. Use diagrams in your answer.

Having trouble determining formulas for four problems

The explanations in the book don't seem to match how these problems are set up, and I am stumped! I need formulas written in numbers, not lengthy wording. Please help! 1) If the GDP in 1999 were $800 and the GDP deflator was 125%, 1987=100%, what is the real GDP and base year? 2) Assume the MPC is 2/3. If gross investment ...continues

Multiple Choice Review: Investment; Goods and Services; Interest; GDP; Economic Equilibrium etc ...

1. According to classical economics: a. markets will always be in equilibrium. b. interest rates will fall whenever savings are greater than investment. c. falling prices will lead to a reduction in unemployment. d. price flexibility will bring about equilibrium in markets when interest rates do not fall ...continues

Aggregate Demand/Supply and the Current US Economic Condition

I am wondering, what is the general assessment of the US economy over the next year or two in tems of Real GDP growth and inflation....ignoring business cycle effects...just in tems of current conditions regarding the aggregate supply (AS) and aggregate demand (AD) sides of the US economy and their COMBINED EFFECT on Real GDP Gr ...continues

Quantity Equation of Exchange and the Fisher effect

Based on quantity theory of exchange (with income velocity V constant) and the Fisher Effect...assuming Yf (full employment) growth rate for real GDP is 3.5% and the real SHORT TERM interest rate (r) is a constant 1% what would be the effect on GDP inflation, GDP growth and Nominal LT Interest rates? Please see attached char ...continues