Basic Hedging MethodsYour company president is concerned about the effect of interest-rate changes on rate sensitive assets and liabilities. You have presented an analysis of both the income and the duration gap of the firm and how this would result in changes in the market value of the bank’s net worth. This presentation made it clear that the bank needs to hedge against an adverse change in the market value of net worth. Based on economi...
Coefficient Estimates and Individual Significance Test She is analysing the effect of bus fares, income, population and density on demand for urban transportation by bus, so she regresses BUSTRAVL on FARE, INCOME, POP and DENSITY. The EViews output of that estimated model is given in Table 1. Notes: 1) Use 5% significance level for all tests. 2) State the null and alternative hypotheses, the test statistic to compute and its distribution, ...
Submission of AssignmentsAll assignments must be submitted online in the module area of the VLE. The assignment submission link opens 21 days before the due date. Please refer to the information provided in the ‘Coursework preparation’ week for submission guidance. Demonstrate knowledge and critical understanding of the economic principles relating to property demand, supply and price; property and building cycles; urban and &nb...
History of the CompanyTask: Begin your paper with the introduction. The active voice, rather than passive voice, should be used in your writing. This template is formatted according to APA Style guidelines, with one inch top, bottom, left, and right margins; Times New Roman font in 12 point; double-spaced; aligned flush left; and paragraphs indented 5-7 spaces. The page number appears one inch from the right edge on the ...
Introduction to the macroeconomic variables that will be used and worked with throughout the semesterTask: In this homework assignment, we are getting our ‘hands dirty’ to get familiar with some of the major macroeconomic variables that we will be using and working with throughout the semester. Our first chapter with ‘something to sink our teeth into’ will be chapter 3 and it is all about the factors of production,...
History of the CompanyTask: Begin your paper with the introduction. The active voice, rather than passive voice, should be used in your writing. This template is formatted according to APA Style guidelines, with one inch top, bottom, left, and right margins; Times New Roman font in 12 point; double-spaced; aligned flush left; and paragraphs indented 5-7 spaces. The page number appears one inch from the right edge on the first line of each...
Two-Country, Two-Goods ModelQuestion 1 Consider a two-country, two-goods world. Trade is based on comparative advantage. You are given the following information (which applies to the whole question, unless otherwise stated): ? One labour can produce 20 toasters (T) or produce 40 ovens (O) in Home (H); while one unitof foreign labour can produce 25 units and 50 units of toasters and ovens respectively. ? The labour endowment in Home is 500...
Factors that Have Caused a Shift in the Demand CurveIndividual Paper (20%) - Supply and Demand Assignment The paper should consist the following sections: the title page, main body, and references. Select a market that is of interest. Use what you know about this industry and knowledge from this course to answer the questions below. Markets that might be of interest (or select your own market of interest): Housing market (or housing rental marke...
Types of UnemploymentDiscuss the different types of unemployment that exist in the economy. Explain what is participation rate in the labor force? How much does the labor force participation rate affect the unemployment rate? Do you think one type of unemployment is worse than others and why? What can governments do to assist in reducing this type of unemployment? Table 1.0 below provides nominal GDP, real GDP and GDP deflator data. (b) What is ...
Question 1: Labor Markets 1.Suppose there are two labor markets in a perfectly competitive industry; one regulated by the minimum wage and one not (not all firms have to follow a federally mandated minimum wage). Draw two graphs in equilibrium without regulation. If a binding minimum wage in placed in one market, show what happens to the quantity traded in that market and the wage and quantity in the unregulated market? 2.Discuss the relevance ...
Purpose of the ArticleYou will read the article Zombie Economics by Patrick McCormick and answer the following questions. 1. What is the purpose of the article? 2. How is the ‘zombie metaphor’ used to relate to economics? 3. Why, in your opinion, do you think that zombies are a popular metaphor? 4. In the last paragraph of the article, the author offers a solut...
Part A - BasicsPart A - Basics 1.The Labor Market a.Briefly explain what economists mean when they say the labor market doesn’t clear in the sense of the classical model. b.Briefly explain why the labor market doesn’t clear. c.Conceptually explain the concept of the natural rate of unemployment. d.Briefly explain what determines structural differences in unemployment rates across geographies, based on the assumptions made abou...
Overview of TaskTask: Prompt Directions: 1.Find two goods or services that have very different demand elasticities. This is assuming you understand elasticity according to chapter 5. Hint, go read chapter 5 if you have not done so. 2.Compare and contrast how people respond differently to price changes between the two goods or services that you selected. Be sure to mention how one is more elastic (slightly sloped) and the other is close to or ...
Problem 1: Absolute Advantage and Ricardian ModelA. Describe the pattern of absolute advantage and briefly explain how you arrived at your conclusion. B. State the opportunity costs to produce a single block of cheese in each nation. C. Describe the pattern of trade we would expect to see between these two nations, according to Ricardo's principle of comparative advantage, and briefly explain how you arrived at your conclusion. D. Suppose ...
Macroeconomic Data AnalysisThe final project for this course is the creation of economic history analysis presentation. Macroeconomics is the part of the study of economics that is concerned with the aggregate or the whole. Macroeconomics provides us with tools and methods to understand how our economy works as a whole. It deals with economy-wide issues such as price levels, employment, national income, and growth. As a student of macroeconomi...