A local daily newspaper has recently been acquired by a large media conglom- erate. The paper currently sells for $1.50/week and has a circulation of 80, 000 subscribers. Advertising sells for $250/page, and the paper currently sells 350 pages/week (50 pages/day). The new management is looking for ways to increase profits. It is estimated that an increase of ten cents/week in the subscription price will cause a drop in circulation of 3, 000 subscribers. Increasing the price of ad- vertising by $100/page will cause the paper to lose approximately 50 pages of advertising per week. The loss of advertising will also affect circulation, since one of the reasons people buy the paper is for the advertisements. It is estimated that a loss of 50 pages of advertisements per week will reduce circulation by 1, 000 subscriptions. Management has decided not to increase the price of advertising beyond $400/page and not to increase the price of the paper beyond $2.20/week.

A) plot the m1 and m2 money stock in the us from 1990-2015. (hint: you may use the data tools provided by fred.) (b) plot the nominal interest rate from 1960 to 2014. (hint: you can either use the daily interest rates for selected u. s. treasury, private money market and capital market instruments from or the effective federal funds rate fromfred.) (c) the consumer price index (cpi) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. intuitively, the cpi represents the cost of living or the average price level. plot the cpi from 1960 to 2013.(d) the inflation rate is the yearly percentage change in the average price level. in practice, we usually use the percentage change in the cpi to compute the inflation rate. plot the inflation rate from 1960 to 2013.(e) explain the difference between the ex-ante and ex-post real interest rate. use the fisher equation to compute the ex-post real interest rate. plot the nominal interest rate and the ex-post real interest rate from 1960 to 2013 in the same graph.

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

How does the federal reserve stabilize and safeguard the nation’s economy? (select all that apply.) it distributes currency and oversees fiscal conditions. it implements american monetary policy. it regulates banks and defends consumer credit rights. it regulates and oversees the nasdaq stock exchange.