Description
Reference Source:
Textbook: – “Mankiw, N. Gregory. Principles of Macroeconomics, 6th ed. Mason, OH:
South-Western Cengage Learning, 2011. ISBN: 9780538453066 (hard copy); ISBN:
9781115468523 (eBook)”
Case Study:1 (5 Points)
Please read the case “Money and Prices during Four Hyperinflations” from Chapter 17
“Money Growth and Inflation” Page: – 652 – Chapter 30 given in your textbook – “Principles
of Macroeconomics”. The case study presented in the chapter discussed the government can
pay for some of its spending simply by printing money. When countries rely heavily on this
“inflation tax,” the result is hyperinflation. and Answer the following Questions:
Questions:
1.1.Suppose a country’s inflation rate increases sharply. What happens to the inflation tax
on the holders of the money? Why is wealth that is held in savings accounts not
subject to a change in the inflation tax? Can you think of any way holders of savings
accounts are hurt by the increase in the inflation rate?
1.2. It is sometimes suggested that the Federal Reserve should try to achieve zero
inflation. If we assume that velocity is constant, does this zero-inflation goal require
that the rate of money growth equal zero? If yes, explain why? If no, explain what the
rate of money growth should equal?
Important Note: – Support your submission with course material concepts, principles,
and theories from the textbook and at least two scholarly, peer-reviewed journal
articles.
Case Study:2 (5 Points)
Please read the case “Oil and the Economy” from Chapter 20 “Aggregate Demand and
Aggregate Supply” Page: – 750 – Chapter 33 given in your textbook – “Principles of
Macroeconomics”. A case study discusses the model of aggregate demand and aggregate
supply explains the economic fluctuations.
Questions:
1.1. Explain the short-run and long-run impacts of oil price increase on output and price
level in the U.S. during 1973-1975 periods using the model of aggregate demand and
aggregate supply.
1.2. Explain the short-run and long-run impacts of oil price fall on output and price level
in the U.S. in 1986, using the model of aggregate demand and aggregate supply
Important Note: – Support your submission with course material concepts, principles,
and theories from the textbook and at least two scholarly, peer-reviewed journal
articles.
•
•
All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be considered
plagiarism).
Avoid plagiarism
Reference Source:
Textbook: – “Mankiw, N. Gregory. Principles of Macroeconomics, 6th ed. Mason, OH:
South-Western Cengage Learning, 2011. ISBN: 9780538453066 (hard copy); ISBN:
9781115468523 (eBook)”
Case Study:1 (5 Points)
Please read the case “Money and Prices during Four Hyperinflations” from Chapter 17
“Money Growth and Inflation” Page: – 652 – Chapter 30 given in your textbook – “Principles
of Macroeconomics”. The case study presented in the chapter discussed the government can
pay for some of its spending simply by printing money. When countries rely heavily on this
“inflation tax,” the result is hyperinflation. and Answer the following Questions:
Questions:
1.1.Suppose a country’s inflation rate increases sharply. What happens to the inflation tax
on the holders of the money? Why is wealth that is held in savings accounts not
subject to a change in the inflation tax? Can you think of any way holders of savings
accounts are hurt by the increase in the inflation rate?
1.2. It is sometimes suggested that the Federal Reserve should try to achieve zero
inflation. If we assume that velocity is constant, does this zero-inflation goal require
that the rate of money growth equal zero? If yes, explain why? If no, explain what the
rate of money growth should equal?
Important Note: – Support your submission with course material concepts, principles,
and theories from the textbook and at least two scholarly, peer-reviewed journal
articles.
Case Study:2 (5 Points)
Please read the case “Oil and the Economy” from Chapter 20 “Aggregate Demand and
Aggregate Supply” Page: – 750 – Chapter 33 given in your textbook – “Principles of
Macroeconomics”. A case study discusses the model of aggregate demand and aggregate
supply explains the economic fluctuations.
Questions:
1.1. Explain the short-run and long-run impacts of oil price increase on output and price
level in the U.S. during 1973-1975 periods using the model of aggregate demand and
aggregate supply.
1.2. Explain the short-run and long-run impacts of oil price fall on output and price level
in the U.S. in 1986, using the model of aggregate demand and aggregate supply
Important Note: – Support your submission with course material concepts, principles,
and theories from the textbook and at least two scholarly, peer-reviewed journal
articles.
•
•
All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be considered
plagiarism).
Avoid plagiarism
Discussion:
The reserve ratio is the portion of reservable liabilities that commercial banks must
hold onto, rather than lend out or invest. This rate is determined by the Country’s
Central Bank. The Cash Reserve Ratio of select Middle Eastern Countries are given
below:
Bahrain (%) — 5.0
Oman (%) — 5.0
Saudi Arabia (%) — 7.0
United Arab Emirates (%) — 1.0
As can be seen, the cash reserve ratio of Saudi Arabia is highest among the listed
nations.
“Discuss on the implications of the 7% reserve rate on Saudi economy,
highlighting the advantages and disadvantages”.
Reference Source:
Textbook: – “Mankiw, N. Gregory. Principles of Macroeconomics, 6th ed. Mason, OH:
South-Western Cengage Learning, 2011. ISBN: 9780538453066 (hard copy); ISBN:
9781115468523 (eBook)”
Case Study:1 (5 Points)
Please read the case “Money and Prices during Four Hyperinflations” from Chapter 17
“Money Growth and Inflation” Page: – 652 – Chapter 30 given in your textbook – “Principles
of Macroeconomics”. The case study presented in the chapter discussed the government can
pay for some of its spending simply by printing money. When countries rely heavily on this
“inflation tax,” the result is hyperinflation. and Answer the following Questions:
Questions:
1.1.Suppose a country’s inflation rate increases sharply. What happens to the inflation tax
on the holders of the money? Why is wealth that is held in savings accounts not
subject to a change in the inflation tax? Can you think of any way holders of savings
accounts are hurt by the increase in the inflation rate? 250 word limit
1.2. It is sometimes suggested that the Federal Reserve should try to achieve zero
inflation. If we assume that velocity is constant, does this zero-inflation goal require
that the rate of money growth equal zero? If yes, explain why? If no, explain what the
rate of money growth should equal? 250 word limit
Important Note: – Support your submission with course material concepts, principles,
and theories from the textbook and at least two scholarly, peer-reviewed journal
articles.
Case Study:2 (5 Points)
Please read the case “Oil and the Economy” from Chapter 20 “Aggregate Demand and
Aggregate Supply” Page: – 750 – Chapter 33 given in your textbook – “Principles of
Macroeconomics”. A case study discusses the model of aggregate demand and aggregate
supply explains the economic fluctuations.
Questions:
1.1. Explain the short-run and long-run impacts of oil price increase on output and price
level in the U.S. during 1973-1975 periods using the model of aggregate demand and
aggregate supply. 250 word limit
1.2. Explain the short-run and long-run impacts of oil price fall on output and price level
in the U.S. in 1986, using the model of aggregate demand and aggregate supply 250
word limit
Important Note: – Support your submission with course material concepts, principles,
and theories from the textbook and at least two scholarly, peer-reviewed journal
articles.
•
•
All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be considered
plagiarism).
Avoid plagiarism
Discussion:
The reserve ratio is the portion of reservable liabilities that commercial banks must
hold onto, rather than lend out or invest. This rate is determined by the Country’s
Central Bank. The Cash Reserve Ratio of select Middle Eastern Countries are given
below:
Bahrain (%) — 5.0
Oman (%) — 5.0
Saudi Arabia (%) — 7.0
United Arab Emirates (%) — 1.0
As can be seen, the cash reserve ratio of Saudi Arabia is highest among the listed
nations.
“Discuss on the implications of the 7% reserve rate on Saudi economy,
highlighting the advantages and disadvantages”. 200 word limit
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