Money & The Federal Reserve

Suppose a new law stated that any person could print their own money. Consider this and answer the following: What kind of changes would come about in daily commercial transactions as a result of such a law? What forms could this private money assume? What would influence an individual to either accept or reject private m ...continues

Federal Reserve Chairman

Some say that the Chairman of the Federal Reserve is more powerful that the President. Do you agree or disagree and why?

What are the three motives for holding money?

What are the three motives for holding money? Explain these motives by writing brief scenarios involving personal own behavior illustrating each motive. Also depict these motives using a graph.

Economic Growth

Explain briefly the fundamental determinants of economic growth and development. According to you, which of these factors is more important? Why?

This discusses the outlook of the Economy

Based on the following economic indicators, I have to determine the outlook of this fictitious economy. Although I know what these indicators mean, I am not certain that I can predict the outlook of the economy. Can you help? Average Weekly Unemployment Claims: 403,000 Declining Manufacturer's New Orders: ...continues

Business Inventories

Since inventories are not a large component of GDP, how can they affect GDP so sharply? How will the replenishment cycle affect GDP in the near future? I know that there is a relationship between consumption expenditures and inventories and that there is an interdependence, but I am not sure how to answer this. It most likely ...continues

What is multiplier?

Using the Multiplier could you please explain how the replenishment of business inventories will affect the GDP so sharply?

Business Inventories

I have tried answering the following question several times, but my professor does not seem to like my answer. Can you help? You all hear on TV every day or so that the US consumer has been holding up and kept our economy going. Conversely, you have heard that the major cause of the current economic weakness has been the rapi ...continues

Unemployment Benefits

Was it a good idea for President Bush to extend unemployment benefits from 26 to 39 weeks in April 2002 and then terminate this measure in March 2004?

Investment Spending

Both in the short run and in the long run, investment is the engine of growth. Why is this so? What are the things the government does or could do to induce private investment spending rather than induce comsumption spending, and are there any specific sectors of the economy that should be targeted?