help me answer the following

2. The government plans to start a food stamp program. The government would issue $100 of food stamp (which can be used only for food) to a needy family.

a. Draw the budget constraint before the food stamp program with food on the horizontal axis and "all other goods" on the vertical. The family has an income of $1,000.

b. How would the budget constraint change when the program is implemented (the stamps are issued)?

3. Consider a utility function U(23862528) = 23862529 + 23862531. Find the Marginal Rate of Substitution (MRS).

Let US be the home country and Canada be the foreign country. Suppose that Canada experiences a temporary decline in their real GDP. Assume all else is constant.

Consider the FX market and the money market diagrams we learned within the asset approach to exchange rate determination and answer the following questions accordingly. Explain when the questions ask you to explain. Do not include graphical illustrations in your submitted answer but feel free to draw them on a paper as they will help you develop your answer.

[5 points] What happens in Canada money market following the policy change? Explain any changes in the graph. [5 points] What happens in the FX market following the policy change? Explain any changes in the graph. What happens to [5 points] How does the equilibrium spot exchange rate E$/CD change? Why (3 points)?

[12:47 AM, 10/30/2021] Fridah: In the goods-and-services market actual inventories have started to rise above optimal inventories. What could have happened to autonomous money demand to bring this about? Explain and diagrammatically represent your answer. In doing so, be sure to explain and diagrammatically represent what happens to the rate of interest, investment, and Y. In explaining what happens to Y, be sure to fully explain the equilibrium process in the simple Keynesian model.

Consider a horizontally differentiated product market in which two firms are located at any points l1 and l2 on the real line, respectively, with the notation l1 l2. Firms produce at marginal costs c. There is a continuum of consumers of mass 1 who are uniformly distributed on the unit interval. They have unit demand and have an outside utility of . A consumer located at x [0; 1] obtains indirect utility v = max (v1; v2) with v1 = r (x l1) 2 p1 if she buys one unit from firm 1 and v2 = r (l2 x) 2 p2 if she buys from firm 2. Firms have marginal costs equal to c.

a. Suppose that prices are regulated at pi = 2c. In the game in which firms simultaneously decide where to locate their product, characterize the Nash equilibrium.

b. Determine the demand function for each firm for each admissible price pair (p1; p2) given locations l1 and l2.

c. Suppose that the two firms simultaneously set prices. Determine the market equilibrium for all possible combinations of (l1; l2).

d. Suppose that the social planner chooses first-best optimal prices. Which price pairs would be socially optimal for the pair of locations l1 = 0 and l2 = 1/2?

e. Compare your results obtained in (c) and (d) for locations l1 = 0 and l2 = 1/2. Is the equilibrium socially efficient? Depending on your answer elaborate on the sources of the inefficiency or give the reason for efficiency.

4. Consider the effect of interest rates on consumption today. Increasing interest rates always has a negative substitution effect (decreases consumption today) and a positive income effect (increases consumption today.

Suppose there are only two goods in the world: tea and coffee. In both the US one pound of tea requires 3 hours of labor to produce and one pound of coffee requires 2 hours of labor to produce. A worker can choose to work either in the tea industry or in the coffee industry (skills are completely transferable across industries) and consider the case when the labor market is perfectly competitive, and the market for tea and coffee are also perfectly competitive. 3 1. (5 points) What is the ratio of the price of tea to the price of coffee?

1. Assume a US bank has a small portfolio of Japanese yen what sort of exchange rate movement would the bank be most concerned about? 2. What are the primary responsibilities of the Federal Open Market Committee? 3. Of the major tools of monetary policy which is used most often and why? 4. What is a primary risk of trading with Fed Funds? How was this risk in play during the crisis of 2008 - 2009?

5. What are the major sources and uses of funds for US commercial banks? Where do these appear on the balance sheets of commercial banks and of what significance are they? 6. Think about the principal assets of commercial banks, what are these? What does this asset structure inform us about the risk impacting a commercial bank? 7. What does a commercial banks' CAMELS rating of '2' imply? What if it were '4'? 8. What if a commercial banks asset utilization ratio were to increase, if other balance sheet items remain constant what, what will happen to return on equity (ROE)? 9. Commercial banks are subject to overlapping layers of regulation and authority, and what are the forms of protection and regulations that are imposed on CB's to ensure their customer safety and soundness? 10.In the US there is the phenomenon of shadow banking. What is this, how does it differ from traditional commercial banking and are there any special risks associated with its use? 11.Please describe some of the reasons for the saving and loan crisis of the 1980's? What does that episode tell us about the regulation of financial institutions in the 21st Century? Do you think that we, as a financial system, learned anything from this earlier crisis? 12.What is the relative size of the credit union industry to commercial banking and of what significance is this? What functions doe CU's perform which banks do not?

Explain the difference between a change in supply (or demand) and a change in quantity supplied (or demanded).

Question 2

I was wondering what some examples of future expectations may be from the citizens? For example, may future expectations of the water usage going up or the water prices lower? I understand that you said that the sellers anticipate a cheaper price but why would that cheaper price be necessary for the future? If you could add some details about that I would love to read your input on that. Nonetheless, you have answered these questions wonderfully.

1) The issue of how much government should be involved in the economy has been the subject of much debate in Canada. In the United States, ideology has played a major role in influencing Americans to believe that, in principle, government should "butt out." This thinking ignores the significant role that the U.S. government has played and continues to play in the country's economy. In comparison, the governments in France and Sweden are more socialistic in nature and government involvement is more common. In Canada, we are less negative and perhaps more pragmatic: If it works, let's do it. But where do we go from here? Do we need less or more government involvement? Is it a question of the quality of that involvement? Could it be smarter rather than just less? How can the cost of government involvement decrease?

2. What are the implications of a majority federal government to the Canadian political scene? How does this differ from a minority government? (A minority government exists when no one party has a majority of seats in a legislative assembly. To pass legislation and other measures, that government would need the support of at least some members of other parties in the assembly.47) Explain.

3. If you represented the federal government, how would you respond to industries that have been seeking government action (e.g., subsidies or changes to policies) but to no avail? For example, take the position of the Canadian forestry industry, which in ten years lost about 114 000 jobs.48 Keep in mind that other industries (e.g., aircraft manufacturing and automotive) have received such support (i.e., subsidies and bailout money).

4. The overnight bank rate, set by the Bank of Canada, is currently very low. What circumstance( s) would cause the Governor of the Bank of Canada to raise this rate? What impact would this increase have on individuals and businesses with debt?

1. My wife is a true woman of south and believes that any good breakfast includes grits (which she loves) and bacon (which I love). Imagine that allocate $60 per week to the consumption of grits and bacon. Grits cost $2 per box and bacon cost $3 per package.

Use a graph boxes pf grits on the horizontal axis and packages of bacon on the vertical axis to answer the following:

a. Illustrate my family's weekly budget constraint.

b. How would your graph change if a sudden decrease in hogs caused the price of bacon to rise to $6 per package?

c. How does this change the opportunity cost of bacon and grits?