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Assume the entire economy contains $5000 worth of one-dollar bills.(a) If people fail to deposit any of the dollars, but instead hold all $5000 as currency, how large is the money supply?(b) If people deposit the entire $5000 worth of bills in banks that are required to observe a 100% reserve requirement, how large is the money supply?(c) If people deposit the entire $5000 worth of bills in banks that are required to observe a 20% reserve requirement, how large is the money supply?(d) In part (c), what portion of the money supply was created due to banks?(e) If people deposit the entire $5000 worth of bills in banks that are required to observe a 10% reserve requirement, how large could the money supply become?
Find out optimal consumption level of video games and burritos that maximizes total utility.
The subsequent table gives total output or total product as a function of labor units used. Does the table indicate a situation of diminishing returns.
What is the profit maximizing output level for the typical firm? (Hint: Calculate MC for each change in output, then find the equilibrium price, and calculate MR for each change in output)
Suppose demand function has changed t0o Qd2 = 14-P. What is the new equilibrium price and quantity. Show your work
Elucidate why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.
Illustrate what are the dividend payout ratios for each firm. What are the expected dividend growth rates for each firm.
The US congress is presently debating the new budget. Should federal spending be drastically reduced.
the comparison of the percentage of change in the one variable divided by the percentage change in the other variable. An analytical technique utilized to show best case scenarios of demand and supply curves.
Suppose your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs;
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Assume you have an industry with 20 firms and the CR is 30 percent. How would I describe this industry?
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
Illustrate what are the major performance goals that we set for the economy, and how do we measure the performance?
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