In the simple quantity theory of money, the AS curve is vertical. Explain why. "An inverted yield curve is a good predictor of US recessions." Discuss the validity of this statement and explain in detail the reasoning. Give an example of how the concept of relative sc...
a. Explain why the normal yield curve has the shape it does and draw it. b. Explain why the inverted yield curve has the shape it does and draw it. What is this indicative of? Discuss why money isn't considered capital in ...
2.3. Mission Drift and Kuznets Curve The welfarists implicitly emphasize that mission drift may lead to a non-linear relationship between MFIs' financial performance and income inequality. This implies that as the microfinance industry becomes increasingly commercialized over time, an inverted Kuznets Cur...
What does an inverted yield curve mean and what are the possible economic consequences? How does the production possibility curve change when society becomes more productive in both goods? Explain how economic growth is shown in terms of the production possibilities curve ...
Describe the shape of the curve. Use a graph to show what happens to the LM curve if there is a decrease in consumers' confidence. What would the LRATC curve look like if there were always constant returns to scale? An inverted yield curve is a good predictor of US recess...
Describe the Kuznets' inverted U hypothesis. Does this hypothesis receive strong support from empirical studies? Explain. Explain the Taylor Rule. What principle explains the concave shape of a utility function? Explain SSNIP. Explain underdevelopment. Explain the short run and long-run equilibria and...
What is a normal, flat, and inverted yield curve and what does each one of them tell us about future interest rates and business activity? Explain the effect of the country's interest rate increases on the IS curve. Explain why pric...
If the segmented markets theory causes an upward-sloping yield curve, what does this imply? If markets are not completely segmented, should we dismiss the segmented markets theory as even a partial ex Momentum is the anomaly that gives those subscribing to efficient markets...
Explain the inverted-U relationship between the growth and pollution. How can consumers reduce pollution and contribute to environmental quality? How does cap and trade solve the problem of figuring out the "right" pollution tax level? (Answer in one sentence.) Explain...
What is a normal, flat, and inverted yield curve and what does each one of them tell us about future interest rates and business activity? Suppose that bond traders expect an increase in the federal funds rate, but the ...