100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

Michigan constructs two inde… Show more (20 points) Consum

Michigan constructs two inde… Show more (20 points) Consumer and Investor Optimism. The University of Michigan constructs two indexes that somehow measure expectations of consumers and investors about the economy. These indexes are the “Index of Consumer Sentiment” (ICS) and the “Index of Investor Expectations” (IIE). The ICS rose from 103.9 in Jan. of 1999 to 112 in Jan. of 2000, indicating expectations of a strong economic growth. Similarly, the IIE rose from 105 to 114 in the same period. In this problem you will study the impact of the facts described above. We start by assuming that the increase in the IIE results from investors expecting an increase in future productivity and the increase in the ICS results from consumers expecting to earn a higher income in the future (in this case, this expectation is possibly associated to the expected increase in future productivity). a. Explain, with the help of a graph, what happens to a firm’s desired level of future capital for any given level of the expected real interest rate. b. Explain, with the help of a graph, what happens to the desired level of investment for any given level of the expected real interest rate and to the desired investment curve. c. Explain what happens to households’ optimal level of current and future consumption and savings everything else constant. d.Explain, with the help of a graph, what happens to the desired savings curve. e.Assume that the goods and services market is initially in equilibrium. Explain, with the help of a graph, what happens to the equilibrium real interest rate, level of savings and investment. Discuss all possibilities. • Show less

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Total Cost: NaN

Get 10% Off on your 1st order!