Econonomic Theory and Models Questions

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Homework for economics " Introductory Econometrics" can you please check the attachments and help these assigments

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Homework 1 Background for the assignment This is a short assignment to get to think about Economic models. In Supplemental Notes (SN)-2, I emphasize

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Homework 1
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Tags: Inflation rate economic theory nominal interest rate econometric models Introductory Econometrics value of cash flows

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Homework 1
1. Research question: What would happen to the firm's cash flows if there is high inflation?
2. What does economic theory say about the relationship between the variables
a. Quantity or Model simple/complex processes - (What is the theory?), and then
The economic theory is that there is a positive relationship between S&P 500 index and
CPI. The absolute value of cash flows are higher when the general price level in economy is
higher. b. Describe the process in terms of relationships (between variables, requires data). i. Y=
f(X2, X3....X- (What are the variables, Y. and the X's?)
The Y variable in this chosen research would be the "S&P 500" and the variable would
be the 'CPI". The data in my study has the Country categories, and the Y and X variables. ...

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