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APA
Subject:
Mathematics & Economics
Type:
Coursework
Language:
English (U.S.)
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Topic:

Economic Assignment USA. Mathematics & Economics Coursework

Coursework Instructions:

 just answer those questions.


 


Extra Credit Questions
Question 1 (15 points)
Please answer in brief. (Explain as much as you can. Proper Explanation will receive full points)
Explain which curve is affected by the following events.
Explain the reason and the direction of the shift of the curve.
Explain what will happen to the interest rate and the investment/output.
a. Americans become more thrifty.
b. Americans become less concerned with the future and save less at each interest rate.
c. The government increases investment tax credits and reduces taxes on the returns to saving at the same time
Question 2 (15 points)
a. What is the difference between debt finance and equity finance?
b. What is private saving? What is public saving?
c. How does Frictional Unemployment differ from the other sources of unemployment?
d. Which type of unemployment will occur even if the wage is at the competitive equilibrium? Why?e. How does unemployment insurance increase frictional unemployment?

Coursework Sample Content Preview:

ECONOMICS
Name
Course
Date
ECONOMICS
Question 1
* When Americans become thrifty they spend less money and this affects consumer expenditure/ spending. Consumer expenditure is a component of the aggregate demand (AD), and the AD will shift leftwards because of a decrease in consumer spending. AD=C+I+G+(X-M), where “C” is consumer expenditure, “I” is investment, “G” is government expenditure and “X-M” is net exports
* Consumers either spend or save their income and when they save they can invest. As such, when there are low savings rates, consumers spend more and the AD will increase resulting in a rightward shift of the AD.
* Investment tax credits and reduces taxes on returns to saving are incentives for business investments since business have more money spend when they are taxed less. Business investment increase the potential for growth, and more workers are likely to be hired, resulting in a rightward...
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