Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
1. Show that for an economy where the growth rate of GDP is zero, to keep its debt-GDP ratio constant, the government must run a primary surplus equal to the interest payments on its outstanding debt.
2. Explain how an acceleration of the GDP growth rate could have contributed to the fall in the debt-GDP ratio during the 1990’s.
3. Consider the money supply model that we discussed in class. (a) Show that we can express the money multiplier m =M/B as m =cr+1/cr+rr. (b) What is the value of m under 100% reserve banking? (c) What is the value of m if depositors keep all their cash in their bank accounts as deposits? Provide some intuition for your result. (d) Describe how bank failures during a financial crisis could adversely affect the money multiplier.
4. Consider the unemployment model. (a) Show that U/L =1/(1+f /s) . (b) Imagine that the government provides new funding for re-training programs to re-train former workers displaced by workplace automation. Explain how this might impact the unemployment rate, referring to the equation above.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more