Expectations for a rate cut will fade as coronavirus fear eases. Questions Why does the Federal Reserve believe that current interest rates are “probably appropriate”? According to the St. Louis Fed President, there’s a high probability that the coronavirus will be a temporary shock. Suppose he is wrong. Is an interest rate cut an appropriate … Continue reading Rate Cut Unlikely as COVID-19 Fears Ease
Month: February 2020
P & G Launch New Brand
Proctor & Gamble launches a new cleaning brand that disinfects without wiping Questions How does Microban 24 combat bacteria? Consider the market for household cleaning products in which Proctor & Gamble and Clorox compete. Do you think Clorox may consider doing research and development to produce a new disinfectant product? Why or why not? Set … Continue reading P & G Launch New Brand
Deficit Surges
US deficit surges 25% in fiscal 2020. Questions What are the federal government receipts and outlays for the first four months of Fiscal 2020? What is the effect of the federal government budget deficit on the demand for loanable funds and the supply of loanable funds? What is the effect of the federal government budget … Continue reading Deficit Surges
Walmart is Making Changes
Walmart changed the way it buys shopping bags. Questions How is Walmart lowering the cost of the vests worn by its workers? Does lowering the cost of the vests worn by its workers change total fixed cost or total variable cost? What is the effect on Walmart’s short-run cost curves? Walmart is changing the type … Continue reading Walmart is Making Changes
The Wonderful Wizard of Insulin
February 19, 2020 After an exciting start to his race for leadership of the Democrats – winning in New Hampshire and a close runner-up in Iowa–those of us at Econ Eye wanted to write about our favorite Bernie Sanders story. What is the Bernie Sanders Insulin Caravan? Back in July 2019, Bernie Sanders and his … Continue reading The Wonderful Wizard of Insulin
Wine Prices Dropping Fast
February 17, 2020 The price of wine is dropping fast Questions What are the grapes sold on the secondary market used to produce? How has the supply of grapes changed since 2016? How does this change influence the market for wine? Why has wine consumption decreased? How does this change influence the market for wine? … Continue reading Wine Prices Dropping Fast
23andMe Slashes Jobs
Feb 14, 2020 23andMe is a firm that supplies direct-to-consumer DNA analysis. To discover your genetic roots, all you do is mail them a saliva sample and they send your ancestry report. Many people want to know their roots, and advances in technology make the services provided by firms like 23andMe easily accessible and very … Continue reading 23andMe Slashes Jobs
70% Chance of Recession in Next 6 Months
February 13, 2020 There’s a 70% chance of recession in the next six months. Questions Why do MIT Sloan School of Management and State Street Associate researchers think there is a 70 percent chance of recession in the next six months? What is a recession? Describe the output gap when the economy experiences a recession. … Continue reading 70% Chance of Recession in Next 6 Months
The Most Expensive Internet in the World
February 13, 2020 Africans face most expensive internet charges in the world. Questions What percentage of average earnings do citizens of Chad, DR Congo, and the Central African Republic pay for 1GB of mobile broadband data? According to the Alliance for Affordable Internet, the price of Internet service will fall if the market moves from … Continue reading The Most Expensive Internet in the World
Vera Bradley Wants to Make Paisley Cool Again
February 13, 2020 Vera Bradley is a U.S. producer of bags, luggage, and accessories. Founded in 1982, the firm is well known for its paisley-inspired designs. Once popular among younger women, today Vera Bradley’s customer base is predominantly women aged 40-to-60. CNN reports that Vera Bradley is attempting to lure back younger customers by introducing … Continue reading Vera Bradley Wants to Make Paisley Cool Again