1.
a. Why might the level of government debt affect the government's incentives regarding money creation?
b. Are governments like households? Describe the similarities and differences between government debt and household debt. Should we treat government debt in the same way we treat household debt?
Part A
The level of government debt might affect government incentives regarding the creation of money. It is because government debt is always specified in nominal terms. When the economy is facing a higher price level that reduces the real value of the government debt. That means the higher debt encourage the government to print money to raise the level of price and reduce the real value of its debt.
Part B
We know that government debt is the annual financial deficit of the country. It is a flow variable, and it is the difference between receipts and payments of the government over a financial year.
The household debt is the combined debt of the whole people in the household. It includes loans and mortgages.
So both household debt and government debt are dissimilar.
1. a. Why might the level of government debt affect the government's incentives regarding money creation? b. Are governments like households? Describe the similarities and differences between gove...
1. a. Why might the level of government debt affect the government's incentives regarding money creation? b. Are governments like households? Describe the similarities and differences between government debt and household debt. Should we treat government debt in the same way we treat household debt?
from (a) and (b). Describe and discuss why differences might exist between high-quality and low-quality corporate debt securities 4-Assume that you can borrow $175,000 for one year from a local commercial bank. a. The bank loan officer offers you the loan if you agree to pay $16,000 in interest plus repay the $175,000 at the end of one year. What is the percent interest rate or effective cost? b. As an alternative you could get a one-year, $175,000 discount loan...
H. = H, = H (6) You are to assume that H , the long-run demand for housing, is equal to the demand for housing you found in part 1. Using this, write out expressions for the two semi-elasticities of long-run house prices in terms of each tax rate. 3. What do your equations for the short- and long-run semi-elasticities say about the reaction of house prices in each period? Briefly describe what is happening. 4. The government wants to...
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Question 1 Which of the following is an accurate statement about the consequences of declining trust in government? Distrust makes people less willing to pay the taxes necessary for public activities. Distrust motivates people to participate in politics through voting, volunteering for political campaigns, and running for office. Distrust makes it easier for the government to help people in times of crisis. Distrust strengthens the government’s ability to defend our national interests in the world economy. Question 3 Generally speaking,...
Read the attached article. Do you feel one style of banking
control is more stable than the other? Why? Does one banking method
minimize market volatility and risk better or is it just packaged
differently? Do you feel the US (Western) Banking system can better
control the patterns of behavior going forward that have caused
economic damage in the past? Should the Fed continue its stimulus
policy, reduce it or abandon it entirely (Google some recent
articles to research this)? (Please...
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FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President passing legislation that will empower the federal government to spend an unprecedented amount of EXTRA money not seen since World War 2 ---- in order to address the pandemic but also to help cushion the blow financially of perhaps ten or twenty million Americans --- or more --- losing their jobs, and thus suffering a drop in income. The scale of the 2020 recession...
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Discussion questions
1. What is the link between internal marketing and service
quality in the airline industry?
2. What internal marketing programmes could British Airways
put into place to avoid further internal unrest? What potential is
there to extend auch programmes to external partners?
3. What challenges may BA face in implementing an internal
marketing programme to deliver value to its customers?
(1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...