Macroeconomic
mark39
ExamIII-TakeHome.docx
Name __________________________________ Date _____________
ECON 3323 – Intermediate Macroeconomics
Exam 3 – Take home
· Answer the following articles using Word.
· Be sure to write both the question number and name of the article (underlined) before answering.
· Neatness and correct form are just as important as the thoroughness of your answers
· Do not attach articles to your answers.
I. The following question is based on the article, “ Why are interest rates so low ?” by ben Bernanke:
According to the author why are interest rates so low? In addition to your verbal exposition, be sure to use the IS-LM framework as well as both the loanable funds and liquidity preference interest frameworks to analyze this question. [Even if you don’t incorporate charts, be sure to explain verbally the direction of change for each curve.]
II. The following question is based on the article, “ The Costliest Mistake In All Of Economics ” by Joe Weisenthal:
Using all of the analytical devices (graphs, equations, identities, etc.) presented in this class, explain his [Bill Gross] mistake [You do not need to use the Charts used in the article to answer this question]. Specifically, use the loanable funds interest framework and the accounting identity framework to answer this question. [Even if you don’t incorporate charts, be sure to explain verbally the direction of change for each curve.]
III. The following question is based on the article, “ The Age of Secular Stagnation: What It Is and What to Do about It ” by Larry Summers. In addition to your verbal exposition, use the loanable funds interest framework to explain why he believes the neutral (or natural) rate of interest is so low. [Even if you don’t incorporate charts, be sure to explain verbally the direction of change for each curve.]
Unrestricted
