Economics Questions, Problems & Solutions : TransWikia.com ~ Page 75

Is the money market model based on assumption of no interest rate targeting on the part of the central bank?

This is quote from Gregory Mankiw's macroeconomics text about mechanism of formation of the interest rate in the money market model:How does the interest rate get to this equilibrium of...

Asked on 08/18/2020

1 answer

Why is gold a safe haven investment?

To me, it seems like gold is the ultimate example of something where the value should go down when the economy, stock market etc go down. Just like Ferraris, and...

Asked on 08/14/2020

6 answer

Discount & Interest rates

Small question, is discount rates and interest rates the same/similar thing in economics? A bit confused regarding this....

Asked on 08/10/2020 by MBA

4 answer

Comparing relative change for different base value

I need to compare change in employment size for a sample of companies. I could use percentage change, however, the problem with it is that when the base is small,...

Asked on 08/10/2020 by Seamus Lam

1 answer

Piracy/File sharing - Why aren't songs, movies or books given for free?

Question: Why aren't songs, movies or books given for free (+ads)?i. Every minute, people are pirating and there is no stopping that. If people see 0.99 for a song on...

Asked on 08/09/2020

5 answer

ARDL and ECM lags

What number of lags should I take in ECM model from ARDL specification? Assume I have equation y=x+z+r+h and ARDL(3,2,1,0). Should I specify ECM model as this d(Y)=d(Y,1) + d(Y,2)...

Asked on 08/05/2020

0 answer

How are recessions even possible if its impossible for banks to lose money?

When a bank issues a loan, the money must end up with another bank. Therefore, the banking system as a whole can never lose money. Only the dumb banks which...

Asked on 08/03/2020 by Anthony Dwayne Chapelle

3 answer

Piketty's explanation of elasticity of substitution (from his book Capital in the 21st century)

I have some trouble following the explanation of the elasticity of substitution between capital and labor and its implications on p189. Take this part:The relevant question is whether the elasticity...

Asked on 07/31/2020 by Nasan

1 answer

Arrow’s Impossibility & Validity of Social Welfare and Pareto Improvement Analysis

Arrow’s Impossibility states it is impossible to formulate a social ordering (Social Welfare Function) without violating some desirable conditions ( one of the “No dictatorship”, “ Pareto Efficiency”, “Independence...

Asked on 07/31/2020

3 answer

Definiton of information sets in rational expecations models

I am struggling with the notion of 'information sets' in the context of rational expectation models in economics. I found interesting notes on the web (http://www2.econ.iastate.edu/tesfatsi/reintro.pdf) but...

Asked on 07/31/2020

1 answer

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