Most popular questions from this chapter
In July 2018 Yi Gang, Governor of the People’s Bank of China, said the fluctuations in the foreign exchange market were mainly due to factors like stronger U.S. dollar and external uncertainties. How can fluctuations in currency exchange rate affect your country’s economy?
In Exercise 1, you collected data on and then graphed the Dow Jones Industrial Average (DJIA). This same site reports forecast values of the DJIA. Go to http://www forecasts.org/data/index.htm, and click on FFC Home at the top of the page. Click on the Dow Jones Industrial link under Forecasts in the far-left column.
a. What is the Dow forecast to be in six months?
b. What percentage increase is forecast for the next six months?
What is the typical relationship among interest rates on three-month Treasury bills, long-term Treasury bonds, and Baa corporate bonds?
How does the current size of the U.S. budget deficit compare to the historical budget deficit or surplus for the time period since 1950?
If history repeats itself and we see a decline in the rate of money growth, what might you expect to happen to
a. real output?
b. the inflation rate?
c. interest rates?
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