Inflation affect on an organization's decision-making process, and Federal Reserve notes.

1. How does inflation affect an organization’s decision-making process? 2. If dollar bills (Federal Reserve notes) are backed by nothing but promises and are in real terms worthless, why do people accept them?

Interest rate prescribed by the Federal Reserve

Will the Fed raise interest rates again a) in the next meeting? b) in the next three months? Why or why not?

U.S. economy

1) How does the trade deficit impact the U.S. economy? 2) How do changes in exchange rate affect a federal government organization? 3) Is a strong U.S. dollar always good for the U.S. and global economies? Why or why not?

Inflation Rates and exchange rates of a country in the short and long run.

How do high inflation rates affect the exchange rate of a country in the short and the long run?

Economic DQ's.

Q.1. In most developing countries, there are long lines of taxis at airports, and these taxis often wait two or three hours. What does this tell you about the price in that market? Discuss using supply demand analysis. (200 to 300 words) Q.2. In the mid 1990s, Japan’s annual money supply growth rate fell to 1-2 percent from an average annual rate of 10-11 percent in the late 1980s. Explain what effect did this decline have on: (Total 200 to 300 words) a. Japanese real output? b. Japanese unemployment? c. Japanese inflation? Q.3. Change in Income (∆Y) = $1000 billion Change in Consumption (∆C) = $900 billion ... click for more