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A bank has total checking deposits of $4 million, with total reserves of $500,000. If the reserve ratio 10%, how much can this bank lend? How much could the banking system potentially lend? Please show work
Think about all the economic data that are reported in the news every day. The information from all of them may be relevant, but does a policymaker really need to know any more about the state of the economy than the level of output and the inflation..
In the late 1990s, the U.S. economy experienced a period of extremely low inflation and extremely low unemployment. Use the AD/AS model to explain what sort of change in the economy would cause this. Include a graphical analysis in your answer, and p..
q.assume that two firms compete in quantities cournot in a market in which demand is described by p 260 - 2q. every
Using the formula for β^1 and β^0, show what will happen to the estimator of the slope and intercept in the SLR model if y is multiplied by the constant k, and at the same time x is multiplied by the constant m.
Which of the following are functions of a central bank? For what period of time was the United States without a central bank? When a country uses a foreign currency as its medium of exchange, it is using
A nation suffering from high unemployment would welcome: A: currency appreciation B. A wave of foreign investment C. currency depreciation D. effects of less expensive exports
Illustrate what does this outcome reveal about the size of the multiplier
The government of a small open economy wishes to promote trade policies that will result in currency appreciation (increasing the real exchange rate). Would protectionist policies (higher tariffs and more quotas) or freer trade policies (tariff reduc..
You had verbal discussions with somebody and a contract was created. Everything was placed in writing at the time, but you have now realized that there is a mistake in the written contract. Can the discussions you had with the other party be brought ..
Suppose the real side of an economy is characterized by: Y = 80K1/2 L1/2 K=100 and L= 100 G = 3000 T = 3000
The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to (-MPLF/MPLC ; -MPLC/MPLF) and it (becomes steeper; is constant; becomes fl..
Examine the following variables that could affect the price of oil: Tax credits were offered for expenditures on home insulation. Choose any two of the above variables, and describe how your selections would affect oil prices based on the supply and ..
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