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(Monetary Control)
Suppose the money supply is currently $500 billion and the Fed wishes to increase it by $100 billion.
a. Given a required reserve ratio of 0.25, what should it do?
b. If it decided to change the money supply by changing the required reserve ratio, what change should it make? Why may the Fed be reluctant to change the reserve requirement?
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use the data on u.s. real gdp below to compute real gdp per person for each year. then use these numbers to compute the
I recently purchased skim milk instead of soy milk because skim milk was less expensive. Describe how the law of demand affected my purchase and discuss new equilibrium price and quantity.
1- explain how a policy mix like the one used in the 1990s could help reduce c eliminatethe budget deficit without
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Compare & contrast the 3 schools of modern macroeconomic thought discussed in class & the text (this includes "Keynesianism", Monetarism & Rational Expectations
Prove that the OLS estimator b2 is an unbiased estimator of the true model parameter 2, given certain assumptions. Make sure to be clear what assumptions these are, and where in your proof they are important
Consider an economy in which consumers have identical preference and income. The income is determined randomly and exogenously in each period. Consumers prefer smooth consumption over time.
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Compare and contrast the different stages of the business cycle and how inflation and unemployment vary via these different stages. Then discuss the appropriate fiscal and monetary policies to address inflation and unemployment.
Should tariffs be used to protect American-made products from foreign competition? Why or why not? Why are some foreign products cheaper than American-made products? Is it proper for the United States to use a tariff to punish foreign producers
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