Can you help me with part c please.Thanks! In March 2020, the World Health Organization declared the new coronavirus outbreak as apandemic. Many policy makers around the world have started worrying about the economicimpact of the pandemic. The immediate effects were through travel restrictions in a fewcountries and isolation of those who were infected.On March 10th 2020, the Bank of England announced an emergency cut ofits interest rate. Explain the economic rationale behind this policy and its limitations.In your answer discuss expected effects on economic variables such as GDP,consumption, investment, net export and unemployment.On March 23rd 2020, the UK entered into the first lockdown restrictingbusiness activities in several sectors of the economy.. One year later, the U.K.Chancellor announced the new budget for 2021 incorporating tax cuts and increasesin government spending such as extensions to the furlough scheme. Explain theeconomic rationale behind these policies and discuss their effectiveness.Explain how the discovery of a vaccine for Coronavirus can generate aneconomic recovery based on the Keynesian theory. In your answer focus ondiscussing the effects on macroeconomic variables such as GDP, investment, wagesand unemployment.The U.K. GDP has declined by 10% during 2020, compared to a 4% declineduring the Financial Crisis in 2009. Some economists argue that the difference inactual aggregate economic activities may be smaller than what the numberssuggest. Explain their argument.

The Coronavirus pandemic not only affected the health of the countrymen but also had a severe…

In March 2020, the World Health Organization declared the new coronavirus outbreak as pandemic. Many policy makers around the world have started worrying about the econo impact of the pandemic. The immediate effects were through travel restrictions in a few countries and isolation of those who were infected. On March 10th 2020, the Bank of England announced an emergency cu- its interest rate. Explain the economic rationale behind this policy and its limitatic In your answer discuss expected effects on economic variables such as GDP, consumption, investment, net export and unemployment.

In March 2020, the World Health Organization declared the new coronavirus outbreak as pandemic. Many policy makers around the world have started worrying about the econo impact of the pandemic. The immediate effects were through travel restrictions in a few countries and isolation of those who were infected. On March 10th 2020, the Bank of England announced an emergency cu- its interest rate. Explain the economic rationale behind this policy and its limitatic In your answer discuss expected effects on economic variables such as GDP, consumption, investment, net export and unemployment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Ever since the Covid-19 pandemic hit the economy the price of gold has been sky high .Today price per gram of Gold is 5291tk. Imagine yourself as a risk averse investor, explain why you would be more or less willing to buy gold under the following circumstances: a) Prices in the gold market become more volatile. b) An additional tax is imposed on all Government bonds. c)Due to Covid-19 epidemic, the economy experiences a recession. d) You just inherited 1000000tk.
In Pakistan there is currently a pensions crisis because the government did not plan pensions of public sector employees efficiently. Instead of raising funds from lifetime earnings of employees, and giving pensionsas returns on savings, pensions currently require budgetary allocation in Pakistan, leading to financial burden on government. In developed countries like the US, where people plan their own pensions this planning for retirement requires a lot of effort, forward thinking and knowledge of financial opportunities. Even then pensions are never completely secure in the US.So, this system is not entirely suitable in Pakistan. Examine the Pension Crisis from perspective of Permanent Income Hypothesis and its modern versions to explain the possible causes of this crisis. Related to causes in part I suggest solutions to the pension crisis in Pakistan
Adam presently makes about $40,000 of interest income per year. He realizes that there is about a 5 percent probability that he may suffer a heart attack. The cost of treatment will be about $20,000 if a heart attack occurs. A. Calculate Adam's expected utility level without any health insurance coverage. B. Calculate Adam's expected income without any insurance coverage. C. Suppose Adam must pay a premium of $1,500 for health insurance coverage with BlueCross Blue Shields insurance. Would he buy the health insurance? Why or why not?
A person's utility function is U = C1/2 . C is the amount of consumption they have in a given period. Their income is $40,000/year and there is a 2% chance that they'll be involved in a catastrophic accident that will cost them $30,000 next year. a. Calculate the actuarially fair insurance premium. What would your expected utility be if you were to purchase the actuarially fair insurance premium? b. What is the most you would be willing to pay for insurance, given your utility function?
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Continue from Question 16: You make $20,000 per year, and there's a $100 insurance expense to mitigate a 1% risk of a $10,000 accident. Utility without insurance and no accident = 2000 Utility without insurance with accident = 1500 What is the expected utility "without" insurance? Utility "2000" "1999" "1500" 1999 2000 1995 1500 $10,000 $19,900 $20,000
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Suppose that you have a job paying $50,000 per year. With a probability of 5%, you will be injured and unable to work for part of the year reducing your wages to $20,000 next year. a. What is your expected income next year? b. Suppose that you could fully insure against the risk of reduced income next year. What would be the actuarially fair premium? c. If your utility function is U = VI where C is your income in any given period, what is your expected utility without insurance? d. If your utility function is U = VI where C is your income in any given period, what is your expected utility with insurance?
With a certain medical insurance policy, the customer must first pay an annual $350 deductible, and then the policy covers 70% of the cost of x-rays. The first insurance claims for a specific year submitted by a person are for two x-rays. The first x-ray cost $600, and the second x-ray cost $900. How much, in total, will he need to pay for these x-rays? He will be responsible for $
Moral hazard is a costly behavior because the insured party acts riskier than they would normally, knowing that they’re covered, and insurance companies allow it because they can sell more policies in addition to receiving bailouts from the government. It is natural for moral hazard to happen, but its effects can have consequences. This was seen during the 2007–2008 financial crisis on Wall Street that later led to the Great Recession. Because interest rates were at an all-time low, credit was incredibly cheap, and borrowing money was easier than ever. Borrowers rushed to buy homes, including those who could not previously afford it. Money lenders approved loans and sold them to banks, which were marketed and sold as low-risk investments. The loans were then sold to investors who were looking to make an easy profit. The U.S. Federal Reserve then increased interest rates as the economy was recovering, but as a result, the housing market crashed because people were unable to make…