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Q. Assume a Calculator virus disables the nation's automatic teller machines , making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on has well as, increasing the demand as well as for money.
A. Assume the Fed does not change the money supply. According to the theory of liquidity preference, what happens to the interest rate? What happens to aggregate demand as well as?
B. If instead the Fed wants to stabilize aggregate demand as well as, how should it change the money supply?
C. If it wants to accomplish this change in the money supply using open-market operations, what should it do?
How large is the bias in the CPI due to not immediately incorporating new goods.
Russian farmers, again, have a poor crop. Their government has announced that they will not ban exports. Discuss the impact on domestic and world prices, consumers and producers the effects of the Russian government's decision.
What is the new equilibrium price and output in the short run for both the industry and each firm.
James earned $10,000 in income in his new job in Nova Scotia after the move and his employer paid him $1,000 specifically to cover the cost of the move, but doesn't specify what it can be used for.
The United Nation's Department of Economic and Social Affairs, Population Division, tracks the total number of foreign-born people by nation.
What is the relationship between marginal cost and marginal revenue when single-price monopoly maximize profit.
Population growth in developing nations has proceeded at unprecedented rates ower the past few decades.
What can be said about the estimated slope coefficient for a regression of Y on X, versus the estimated slope coefficient for a regression of X on Y.
Think of any financial innovation in the past ten years
Explicate why the government expenditure multiplier is different from the tax multiplier.
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
The banking system is a fractional reserve banking system with a desired reserve deposit ratio. Banking system is a fractional reserve banking system.
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