In 2008 The Federal Reserve Took Pretty Extraordinary Measures In An Attempt To

2. In 2008 the Federal Reserve took pretty extraordinary measures in an attempt to stabilize the economy. You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1 and that initially the real interest rate is equal to the marginal product of capital at 4%. As well, assume that v=1/2 and that the inflation rate last period was 2%a. If the housing bubble busting causes the share of output of investment to fall 6% of potential GDP, what will happen to the economy?now?c. What will the inflation rate be?Is it enough to push the economy back to potential?

 
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In 2008 The World Entered The Worst Recession Since The Great Depression Of The

In 2008, the world entered the worst recession since the Great Depression of the 1930s. Of course, many people lost their jobs and houses while others became uncertain about their financial future. Use the theory of supply and demand to predict the effect the recession would have on airline demand (the willingness and ability of people to purchase airline tickets), supply (the willingness and ability of airlines to provide flights), and price (the average price of an airline ticket).

Data Source

The federal government collects and makes an immense amount of data on the US economy available to the public, including large airline datasets. Having made your predictions or hypotheses, use the US airline industry data from the US Bureau of Transportation Statistics (BTS) to see if the industry reacted as you expected.

To obtain the data to test your predictions (hypotheses), find a BTS customizable data table following these steps: 1) Google “Bureau of Transportation Statistics”, 2) use the search box for “Air Traffic”, 3) select “U.S. Air Carrier Traffic Statistics” which will return a customizable table. (Note: The BTS occasionally changes the presentation of the data which affects the steps needed to find data. It may be necessary to modify this search slightly.)

Customize your data by selecting:

  1. From 2007 until the end of the recession or to an endpoint of your interest
  2. Domestic
  3. Scheduled
  4. Passengers, then select the statistics of interest (scroll to the bottom for selection criteria).

Prices

Prices are, of course, another piece of this puzzle. BTS provides a table of national fares. To find these data, use the BTS search box for Air Fares. Locate National Level Fares Since 1995. Again, the BTS occasionally changes the database names and files, so you may need to modify this search.

Discussion

Post your findings and explain your initial predictions.

  • Would either the supply and/or demand curves shift?
  • What is the predicted effect on quantity supply and demanded and on average price?
  • Although not required, a graphical depiction would be helpful. Then discuss whether the data support your predictions. Graphs of the data are easily prepared in a spreadsheet. Again, these are not required but would be helpful.
  • A few airline terms will be helpful.
  • Airline supply is usually measured in Available Seat Miles (ASM).
  • Measures of demand are Revenue Passenger Miles (RPM) and Enplanements.
  • Passenger Load Factor is yet another indication of demand.
  • Should you ever wish to do more research, perhaps for the GCP, the BTS has all the airline statistics you will probably ever need.
 
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In 2009 Mr Smith Purchased A Principal Residence For 1 500 000

Tax research assignment – include a memo and a client letter.In 2009, Mr. Smith purchased a principal residence for $1,500,000. He made a down payment of $300,000 and financed the remainder by borrowing $1,200,000 through a loan secured by the residence. In 2009, Mr. Smith paid interest that accrued on the indebtedness during that year. He had no other debt secured by the residence. May he deduct the entire amount of interest which was paid on the home loan?research memo, which has five basic parts: (1) facts, (2) issues, (3) authority list, (4) conclusion, and (5) analysis.Basic components of the client letter include: (1) research question and limitations, (2) facts, (3) analysis, and (4) closing.

 
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In 2009 Osgood Corporation Purchased 4 Million In Ten Year Municipal Bonds At Fa

4. In 2009, Osgood Corporation purchased $4 million in ten-year municipal bonds at face value. On December 31, 2011, the bonds had a market value of $3,600,000 and Osgood reclassified the bonds from held to maturity to trading securities. Osgood’s December 31, 2011, balance sheet and the 2011 income statement would show the following:Investment in municipal bonds Income state. loss on inva. 3,600,000 0b. 3,600,000 400,000c. 4,000,000 400,000d. 4,000,000 0A. Option bB. Option aC. Option CD. Option D

Question:4. In 2009, Osgood Corporation purchased $4 million in ten-year municipal bonds at face value.On December 31, 2011, the bonds had a market value of $3,600,000 and Osgood reclassifiedthe…

 
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In 2009 The Median Price To Earnings Ratio For The Sp 500 Was 11 If The Long Run

In 2009, the median price-to-earnings ratio for the S&P 500 was 11.1. If the long-run return on equity is 13.5 percent and the long-run growth in GDP is expected to be 6.7 percent (3.5 percent real growth and 3.2 percent inflation), what is the real cost of equity implied by the equity-denominated key value driver formula?

In 2009, the median price-to-earnings ratio for the S&P 500 was 11.1. If the long-run return on equity is 13.5 percent and the long-run growth in GDP is expected to be 6.7 percent (3.5 percent…

 
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In 2010 Bluebird Corporation Had Net Income From Operations Of 80 000 And Operat

In 2010, Bluebird Corporation had net income from operationsof $80,000 and operating expenses of 30,000. Further, Bluebird recognized a long-term capital loss of $20,000, and a short-term capital gain of $5,000. What is the taxable income to be reported by Bluebird Corporation in 2010?

 
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In 2010 Carroll Et Al Published A Series Of Bupropion Derivatives J Chem 2010 53

In 2010, Carroll, et al. published a series of bupropion derivatives [J. Med. Chem. 2010, 53, 2204.] Show how to synthesize the derivate shown below on the left from phenyl ethyl ketone, the molecule shown below on the right. (Hint: use the reactions in this experiment, plus one other reaction that you probably learned in CHM 228.)

 
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In 2010 Dooling Corporation Acquired Oxford Inc For 250 Million Of Which 50 Mill

In 2010, Dooling Corporation acquired Oxford Inc. for $250 million, of which $50 million was attributed to goodwill. Dooling tests for goodwill impairment at the end of each fiscal year. At the end of 2011, Dooling’s accountants derive the following information:Assume the same facts as above, except that the fair value of Oxford (the reporting unit) is $225 million.Required: Determine the amount, if any, of the goodwill impairment loss that Dooling must recognize on these assets.

Question: In 2010, Dooling Corporation acquired Oxford Inc. for $250 million, of which $50 million was attributed to goodwill.Dooling tests for goodwill impairment at the end of each fiscal year….

 
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In 2010 Glacial Hvac Inc Sold 3 305 Air Conditioning Units In Fulton County Duri

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In 2010 Jennifer Jen Liu And Larry Mestas Founded Jen And Larry S Frozen Yogurt

In 2010, Jennifer (Jen) Liu and Larry Mestas founded Jen and Larry’s Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. Jen and Larry began producing small quantities of unique flavors and blends in limited editions. Revenues were $600,000 in 2010 and were estimated at $1.2 million in 2011.Because Jen and Larry were selling premium frozen yogurt containing premium ingredients, each small cup of yogurt sold for $3, and the cost of producing the frozen yogurt averaged $1.50 per cup. Administrative expenses, including Jen and Larry’s salaries and expenses for an accountant and two other administrative staff, were estimated at $180,000 in 2011. Marketing expenses, largely in the form of behind-the-counter workers, in-store posters, and advertising in local newspapers, were projected to be $200,000 in 2011.An investment in bricks and mortar was necessary to make and sell the yogurt. Initial specialty equipment and the renovation of an old warehouse building in lower downtown (known as LoDo) of $450,000 occurred at the beginning of 2010 along with $50,000 being invested in inventories. An additional equipment investment of $100,000 was estimated to be needed at the beginning of 2011 to make the amount of yogurt forecasted to be sold in 2011. Depreciation expenses were expected to be $50,000 in 2011, and interest expenses were estimated at $15,000. The tax rate was expected to be 25 percent of taxable income.A. How much net profit, before any financing costs, is the venture expected to earn in 2011? What would be the net profit if sales reach $1.5 million? What would be the net profit if sales are only $800,000?B. If inventories are expected to turn over ten times a year (based on cost of goods sold), what will be the venture’s average inventories balance next year if sales are $1.2 million? How much might the venture be able to borrow if a lender typically lends an amount equal to 50 percent of the average inventories balance? If the borrowing rate is 12 percent, how much dollar amount of interest would have to be paid on the loan?C. How might the venture acquire and finance the new equipment that is needed?D. Identify potential government credit resources for the venture.E. Prepare a summary of the benefits and risks of Jen and Larry’s continued use of credit card financing.F. Prepare a summary of how the venture might benefit from receivables financing if commercial customers are extended credit for thirty days on their purchases.G. Discuss the impact of potential loan restrictions should the venture seek commercial loan financing.H. Comment on how the venture might be evaluated in terms of the five Cs of credit analysis.

 
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