The Real Economy in the Long Run
Need to answer each question with knowledge - atleast 150+ words count. No APA format needed as all answer will be copied and postal into a portal.
- Consider how to explain how higher saving leads to a higher standard of living. What might deter a policymaker from trying to raise the rate of saving?
- The economy is moving into a period with higher nominal interest rates. How is this likely to affect bond prices? Based on this, is having an undiversified portfolio 100% in bonds a wise move?
- Consider why it's important for people who own stocks and bonds to diversify their holdings. What type of financial institution makes diversification easier?
- Consider a change in the tax code that might increase private saving. If this policy were implemented, how would it affect the market for loanable funds?
- Consider what benefit people get from the market for insurance. What two problems impede the insurance market from working perfectly?
- Consider what factors a stock analyst should think about in determining the value of a share of stock.
- Consider how to describe the efficient markets hypothesis with evidence.
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