some econ question

yuethoi123

a.  How could you use a production possibilities curve to explain scarcity, opportunity cost and efficiency in a primitive tribal society?

b.  What is equity in an en economic system, and why is it difficulty to obtain in America.  

c.  Which government roles do the least to help labor productivity?  Why?

1. In the USA:  If the price of a $100 face value one-year bond is $105 and the coupon is $10, what is the current yield?

2. Considering number 1 above, has the price of the bond risen or declined from the date it was originally issued?

3. Considering number 1, above, has the interest rate gone up or down since the bond was issued?

4.  How will investment spending react to the result you determined in 3 above?

5. Considering your answer to question 3, describe what will have in the capital account in the balance of payments.

6. Considering your answer to question 3, describe what will have in the foreign exchange market.

a. Assume that fed funds rate was 4% but fell to 2% due to the monetary policy of the Fed. What type of monetary policy did the Fed enact?  Explain by describing supply and demand in the fed funds market and the money multiplier.

b. If the economy were in a trough of the business cycle, what would you expect to happen to the economy in the short-run from the Fed's policy?  Explain in detail.

c.  If the Fed's policy continued for several years, what would you expect to eventually happen to the economy?  Explain while describing the shifts in aggregate supply and demand.

as much as you can answer. thx~

gd510