Finance-AW633

Finance-AW633 Online Services

 

Extra-credit Assignments
 

Instructions: You may complete as many of the following assignments as you like. If you chose to only do some (or one) of the assignments, you may choose which one(s) you would like to complete. Summaries should be submitted with one inch margins on all sides and a separate title page (do not try to fill up the page with headers or similar things). Professional writing is expected. Work must be completed individually, and each assignment will be worth a maximum of ten course points (or less).
 

1. Read the article “Is the 2007 U.S. Sub-Prime Financial Crisis So Different? An International Historical Comparison” and write an at least one page (single space) summary and evaluation of the article. How have equity prices and housing prices evolved in the USA since 2007 when compared to prior international crises? (Look at the S&P/Case-Shiller 10-City Composite Home Price Index file [click on the “Export” button on the graph] available from http://us.spindices.com/indices/real-estate/sp-case-shiller-10-city-composite-home-price-index and calculate the percentage drop in home prices from the peak in the 10-City Composite in 2006 until its lowest point thereafter and also until its most recent value.
 

For equity trends, look at the S&P 500 index since 2007 for a comparison.) Does it appear that we have followed a similar trajectory? Note that for most of the article time T is taken to be the year 2007. What do prior crises suggest about the United States’ prospects for an economic recovery as shown by GDP growth per capita? What do prior crises suggest about the evolution of national debt levels in recent years and in the years ahead? How does that compare with the implications of current national budget proposals? In light of previous financial crises, should the developments associated with the most recent financial crisis surprise us?
 
You can read more about our case study assignment help services here.
 

 

2. Read the article “The Aftermath of Financial Crises” and write an at least one page (single space) summary and evaluation of the article. Have housing prices in the USA followed a similar path as those predicted by prior financial crises? (Look at the S&P/Case-Shiller 10-City Composite Home Price Index file [click on the “Export” button on the graph] available from and calculate the percentage drop in home prices from the peak in the 10-City Composite in 2006 until its lowest point thereafter and also until its most recent value.) What does the article indicate about the typical duration of the impact of financial crises upon home prices?
 

Comment upon how that affects your perception of political efforts to stabilize and/or increase home prices – do prior crises suggest that such efforts are likely to be successful? How are equity prices performing? (Look at changes in the S&P 500 index for a comparison.) Does it look like the market low in March of 2009 compares with the average decline in equity values (relative to the prior market peak) as a result of the financial crisis? In light of the average duration of the decline in equity prices from financial crises, provide both an optimistic and a pessimistic interpretation of the recent trends in the stock market.

 
Be sure to comment on anticipated changes (increases or decreases) in unemployment and how they compare with the increase in unemployment which was experienced as a result of the recent financial crisis. Also, be sure to comment on the implications of the historical average increase in real public debt in the three years after the financial crisis – what does that suggest for the United States? In light of previous financial crises, should the developments associated with the most recent financial crisis surprise us?
 

3. Read the article “U.S. Household Deleveraging and Future Consumption Growth” and write an at least one page (single space) summary and evaluation of the article. What implications do the trends shown in this article have for the future standard of living for most people in the United States? Is it likely that people will be able to continue to borrow freely and live beyond their means? What implications are there for the personal savings rate? If households spend less and save more, what are the short-term implications for business profits and therefore short-term economic growth?

 
Would this tend to favor a faster recovery from the most recent crisis, or a slower recovery? What would be the likely implications for the long-term economic future of the United States? Recall that consumption often leads to short term economic growth, while savings can lead to investment, which tends to support long-term economic growth. This is analogous to the choice individuals face between spending money today for a benefit today, or investing money for a future benefit – which results in fewer benefits today.

 

4. Read the article “Fighting Downturns with Fiscal Policy” and write an at least one page (single space) summary and evaluation of the article. Recall from economics that the government spending multiplier essentially indicates how much economic activity is generated from a dollar of government spending. If the multiplier is greater than one, it indicates that the government can stimulate the economy by more than a dollar for every dollar which it spends. This would imply that a 1% increase in government spending would produce a >1% increase in GDP.
 

If the multiplier is less than one, it indicates that for every dollar spent the economy grows by less than a dollar. This would imply that a 1% increase in government spending would produce a <1% increase in GDP. Note the projections by the advisor to Vice President Biden at the top of page two and consider that such projections formed some of the basis for the economic stimulus activities taken by the government. Are all of the studies in agreement with those projections? What multipliers have been suggested for tax cuts? With that in mind, comment upon the relative benefit of the impact of increased government spending as it compares to the relative benefit of tax cuts, according to the studies mentioned.   project code: Finance-AW633
 
Looking for best Finance-AW633 online ,please click here