2023 Midterm quiz week 3 Cyclical Instability Requirements Arial 11 more than 720 words 1 Why do rich | Assignments Online
2023 Midterm quiz week 3 Cyclical Instability Requirements Arial 11 more than 720 words 1 Why do rich | Assignments Online
Assignments Online 2023 Business Finance
Midterm quiz, week 3
Cyclical Instability
Requirements: Arial 11’ more than 720 words.
1. Why do rich people have a higher marginal propensity to save than poor people?
2. How do households dissave? Where do they get the money to finance their extra consumption? Can everyone dissave at the same time?
3. How might a “perfect” macro equilibrium (Figure 9.10a) be affected by (a) a stock market crash; (b) the death of a president; (c) a recession in Canada; (d) a spike in oil prices?
4. How did the decline in U.S. home prices in 2006-8 affect aggregate demand?
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