Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

In the summer of 2010, Congress passed a far-reaching financial reform to prevent another financial crisis like the one experienced in 2008-2009. Consider the following possibilities: (A.) Suppose that, by requiring firms to comply with strict regulations, the bill increases the cost investment. On a well-labeled graph, show the consequences of the bill on the market for loanable funds. Be sure to specify changes in the equilibrium interest rate and level of saving and investment. What are the effects of the bill on long-run economic growth? (B.) Suppose, on the other hand, that by effectively regulating the financial system, the bill increases savers' confidence in the financial system. Show the consequences of the policy in this situation on a new graph, again nothing changes in the equilibrium interest rate and level of saving and investment. Again evaluate the effects on long-run growth.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939009

Have any Question?


Related Questions in Microeconomics

Question from 20003 through 20022 real growth slowed down

Question: From 2000.3 through 2002.2, real growth slowed down substantially in the US economy, which was in a recession during most of 2001. Over that two-year period, real growth averaged 1.0%. According to Okun's Law, ...

Question an economic consultant studies the labor policies

Question: An economic consultant studies the labor policies of a firm where it is difficult to monitor workers and prepares a report in which she recommends that the firm raise employee wages. At a meeting of the firm's ...

Question 1 in january 2009 congress passed a major stimulus

Question: 1. In January 2009, Congress passed a major stimulus bill. The bill increased federal spending over several years; in 2010, stimulus spending was $385 trillion, or about 2 percent of GDP. According to the Offic ...

Question select a developed country that has implemented a

Question: Select a developed country that has implemented a tariff and a developing country that manufactures products that are affected by that same tariff. Investigate the impact of the trade barrier on the developing ...

Question a assuming a competitive labor market use a labor

Question: a. Assuming a competitive labor market, use a labor supply and demand diagram to illustrate what will happen to wages and employment if the demand for the product being produced decreases. b. Assuming a monopso ...

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question an investor buys a coupon bond and holds it for

Question: An investor buys a coupon bond and holds it for exactly one year and then sells it in a secondary market prior to maturity. The investor buys it for $4,000, sells it one year later for $4,300 and receives a cou ...

Question the us economy was in recession in 1974 1980 1982

Question: The US economy was in recession in 1974, 1980, 1982, 1991, and 2001. Based on our earlier discussion of export and import functions, net exports would be expected to increase in recession years because of the d ...

Question using two demand and supply diagrams one for the

Question: Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how a program that increased educational levels for a substantial number of low-skill work ...

Question why is there asymmetric information in the labor

Question: Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate the traits they are seeking in a new employee? The response must be typed, single spaced, must ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved