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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.
Describe the cost- benefit approach that a typical economist takes to analyze regulations. How are economic policies impacted by politics, and how can politics make a positive or a negative contribution to economic policy?
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros) What is the real exchange rate? In which country is the automobile less expensive?
How much (per unit) is the tax? Briefly discuss how incidence of the tax is divided between buyers and sellers in this case. Find comsumer surplus and producer surplus both before and after the tax. How much tax revenue has been generated? What impac..
From the scenario for Katrina's Candies, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs
The residents of the town Ectenia all love economics, and the mayor proposes building an economics museum. The museum has a fixed cost of $2,400,000 and no variable costs. There are 100,000 town residents, and each has the same demand for museum visi..
Economists oppose limiting economic growth possibilities because such limits would inevitably involve
Differentiate between public, private, not-for-profit, and for-profit hospitals. What factors do patients consider when selecting a hospital? Does the type of hospital matter regarding the cost, quality, or access to care? Why or why not?
elucidate what will be the effect on the world price of wool. How does the marginal revenue to Australia from an extra unit of wool relate to the price of wool.
If this statement is true and why or why not. "Ronald Coase would suggest that taxing your roommate at the margin for playing music too loudly would result in the efficient allocation if the tax is set appropriately."
In a progressive tax structure:
Is conspicuous consumption for real or just a rational response to higher income? How does this effect the consumption curve and aggregate expenditures model? What is the relationship with GDP?
A manufacturer plans to open a new plant. The new plant will cost $4,000,000 to build and make ready for production. Company management believes that the plant will produce a net profit of $150,000 in the first year and that profit will increase 5% p..
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