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Rosa banks with Olympia Credit Union and Rosa’s employer uses Washington National Bank. Rosa receives a salary of $2,500 every month which is directly deposited into her checking account. Assume that banks are required to maintain a 10% reserve ratio.
a. Explain how this affects Olympia Credit Union’s assets and liabilities (including required and excess reserves), at the beginning of every month.
b. Explain how this affects Washington National Bank’s assets and liabilities at the beginning of every month.
If the quality differences of similar products are mostly imperceptible to the average consumer's eyes, which of the following will most likely play a major role in influencing the decisions of purchasers?
State whether each of the following events will cause a movement along the demand curve for Big Mac or whether it will cause the demand curve for Big Mac to shift? If the demand curve shifts, indicate whether it will shift to the left or to the right..
"Because agricultural demand is inelastic, a technological advance that lowers costs will reduce total revenues. Thus, farmers have no incentive to adopt such new technology." True or false? Explain
Imagine that you and a group of your fellow classmates own a company that manufactures cheap sunglasses. To lower production costs, you want to move your factory from your developed country to a more cost-effective nation. Choose a prospective countr..
Ron and Jerry purchase investment real estate together, titling it as Tenants in Common. Jerry dies after eating too many chicken wings at 5 cent wing night, and his will provides that all assets pass to his son. Ron claims that, as the co-owner, he ..
Explain how information flows through the layers of the OSI model. Use the postal service as the example. Make sure you clearly indicate which layer you are referring to.
There are only two consumers: Bill and Ted, and two goods: apples and bananas. Bill and Ted like apples and oranges. Bill is always willing to subsitute 1 apple for 3 bananas. Construct an appopriately sized Edgeworth box for them. Find the constrain..
Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.
Suppose that there is an exogenous unexpected decline in consumption spending by households. Use the IS-LM, AD-AS model to derive the short-run and long-run effects on i, P, and Y.
Using the sticky-price model, the higher the average rate of inflation, the more frequently firms must adjust their prices, which implies that a high rate of inflation: Starting from long-run equilibrium in the dynamic model of aggregate demand and a..
the quantity supplied of the Real GDP in the long run is $4.3 trillion. Evalute is the economy in short run equuilibrium. Will the price in long run equilibrium be greater than, of less than, or equal to 132.
In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets. Cite as many examples as you can of these types of businesses.
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