Posted on: 20th Apr 2023
Macroeconomics Assignment, SMU, Singapore Consider the effects of a global shortage of microchips that are used in a range of products including personal electronic
University | Singapore Management University (SMU) |
Subject | Macroeconomics |
- Consider the effects of a global shortage of microchips that are used in a range of products including personal electronic devices and cars, etc. For a country such as Singapore, this development will, ceteris paribus, likely result in a short-run increase in CPI and hamper economic growth.
- Consider a scenario where a firm has taken out a loan to finance the purchase of robots that it will use in production. Assume that the nominal interest rate at the time the loan was created is 8% and the expected rate of inflation was 5%. If inflation ends up running higher than expected at 9% the firm will make a loss and would have been better off not undertaking the investment in robots.
- Governments need to play a role in helping stabilize the economy and furthermore because of their efforts to promote economic growth, this ultimately increases the living standards experienced by everyone in a country in a manner that is more equitable compared to if the government played no role and only market forces prevailed. Discuss.
- Drawing upon the principles of the loanable funds market model, assume that the government slashes its spending while there is no change in taxation and holds constant all other factors in the economy. This policy is likely to have a positive effect on (planned) private investment in the economy. “Private investment” refers to investment in physical capital by firms and residential investment by households.
- Consider a prosperous open economy such as Singapore. If Singapore’s saving rate is 25%, while its investment rate is 20%, the economy will experience a trade surplus, meaning that receipts from exports exceed expenditures on imports.
Hire a Professional Essay & Assignment Writer for completing your Academic Assessments
At Myassignmenthelp.sg, online dissertation help is just a few clicks away! We offer online assignment assistance from professionals in all spheres of dissertation writing, from topic selection to final proofreading and revising. Take advantage of our thesis help today and see your research ambitions come true!
Answer
Recent Solved Questions
- 5010MKT/2005MKT Ice Cream Launch Marketing Plan: Singapore Strategy for Growth, Profitability & Sustainability
- BUS306 Audit Risk Assessment : Outback Retail Ltd Case Study for ERP, BNPL & Governance Evaluation
- CVE2322 Concrete Materials Laboratory Report: Observations, Analysis, and Reflections from SIT Lab and iLab Visit
- PSB6008CL Social Entrepreneurship Assignment: Case Study on Impact-Driven Innovation & Leadership in a Social Enterprise
- PSB6014CL Project Management Assignment : Digital Transformation Case Study in Online Banking Services for a Leading Financial Institution
- Financial Management Assignment : Global Case Study for Corporate Valuation, WACC & Scenario-Based CAPEX Analysis
- CM1040 Web Development Assignment : HTTP & Responsive Design Case Study for Accessible and Secure User Experience
- Master Budget Report 2025: SBS Industrial Budgeting, Performance & Financial Analysis
- 7WBS2009 Financial Analysis Assignment Report: Investment Decision Between Alpha plc and Beta plc for Gamma Company
- PSB7003CL Entrepreneurship and Innovation Assignment Report: Evaluating Innovation Practices in Organisation
UP TO 15 % DISCOUNT