Please answer the following short answer questions with 2 or more paragraphs each:
1) How do the expectations of future interest rates impact an investor’s willingness to pay for a stock, ceteris paribus? Justify your answer.
2) Please explain carefully; how did the “call loans” of the 1920s contribute to the severity of the stock market crash of 1929?
3) What are some of the most compelling evidences for the Keynesian interpretation of the Great Depression and why?
4) Please carefully explain (using the theory of utility maximization) if a farmer would prefer to receive price supports or direct income supplements and why, ceteris paribus.
5) Please explain and define the Phillips curve.
6) How does the QWERTY keyboard demonstrate “path dependence”?
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