Reference no: EM131040049
Explain how each of the following changes would affect the supply of money, the demand for money and interest rate. Support your answers with graphs.
An increase in credit card usage reduces the cash people hold.
(draw money demand & money supply curve)
Households decide to hold more money to use for holiday shopping.
(draw money demand & money supply curve)
The business firms increase investments and this increases aggregate demand.
(draw money demand & money supply curve)
If the central bank buy's bond in the open market operations what would happen to the money supply and money demand. Draw money demand & money supply curve and explain.
If the Central Bank decreases the money supply, use the model of money demand and money supply curve to show how this will affect the interest rate, output and in the short run.
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Long-run behavior of the nominal exchange rate
: Suppose that a monetary model describes the long-run behavior of the nominal exchange rate well, but fails to describe the short-run behavior; specifically, in the short run large deviations from purchasing power parity are observed due to nominal..
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When compared to union contract grievance procedures
: With current employment law, do you believe an open door policy is an adequate grievance procedure? What are the advantages and disadvantages when compared to union contract grievance procedures?
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How do firms maintain or increase their market share
: Using demand and supply analysis together with the cost curves, explain why the actions to minimise loss lead to firms' making normal profit in the long run?
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Other employment law violations-some employers
: In order to avoid costly court cases over alleged discrimination, harassment, or other employment law violations, some employers are requiring employees to agree in advance to waive their rights to court action and to instead arbitrate these claims. ..
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Calculating the supply of money
: Explain how each of the following changes would affect the supply of money, the demand for money and interest rate. Support your answers with graphs.
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Because of the duty of fair representation
: Because of the duty of fair representation, unions have an obligation to represent all workers fairly and thus unions are sometimes put in the awkward role of advocating on behalf of a poor performing worker—but this is their legal obligation. Do you..
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Calculating the lower interest rates
: The Fed's main tool to accomplish this is through open-market operations. What does the Fed do when it engages in open-market operations? What specific actions would the Fed take to lower interest rates? How would these actions accomplish the go..
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Will different methods of evaluating project typically yield
: Will different methods of evaluating a project typically yield the same conclusions about whether to fund its development? Why or why not? Give examples
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Is the thesis statement interesting
: Is the paper well-organized, first presenting background information, then providing an overview of economic reasoning that is useful for understanding the issue at hand, then supporting the thesis by referring to economic reasoning and evidence, ..
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