Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Solve the questions in the picture. 1. Expound on this quote. The economy may easily slow down or expand in the next couple years. The

image text in transcribed

Solve the questions in the picture.

image text in transcribed
1. Expound on this quote. "The economy may easily slow down or expand in the next couple years. The reason is that there are a few optimistic factors, but there also are a few pessimistic ones. Among the positive variables are first, expansionary monetary policy, extremely strong fiscal policy with the stimulus bills passed in the last few months and a lot of savings, which have not been spent due to the virus. However, there are three key weaknesses. One is the high incidence of the virus and the corollary that people are afraid to spend by going out. The second is the woeful investment in Infrastructure of all sorts, which has occurred in the last four decades. The third is the Increase in the last four decades in inequality of income and wealth, which makes the masses, poor and most middle income people, lose substantial buying power. 2. How does monetary policy and financial variables, generally, affect the economy, the stock and bond markets? Does money determine those markets or is it the other way around according to empirical evidence

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E Marketing

Authors: Raymond Frost

7th Edition INTERNATIONAL EDITION

0132953443, 978-0132953443

More Books

Students also viewed these Economics questions

Question

understand the selection bias in contemporary work psychology;

Answered: 1 week ago

Question

3. How much information do we need to collect?

Answered: 1 week ago

Question

2. What types of information are we collecting?

Answered: 1 week ago

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago