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FRED reports that the University Michigan Consumer Sentiment Index was 82.5 in June 2014 and 96.1 in June 2015, the most recent month reported. Explain how this change affects the bond market, the money market, the international exchange market for the US dollar, and aggregate supply and demand.
Which of the following is included in a nation's capital and financial account? the purchase of foreign stocks and bonds. the sale of foreign stocks and bonds
A price taking firm chooses its inputs to maximize short-run profits. Its Cobb-Douglass production function has the following form: q(L, K) = L ^(1/2)K^(1/3) . The output price is 1,000 per unit and the cost of each unit of input is 10. In the short-..
Sketch a simple T-account for First National Bank which has $5,000 of deposits, a required reserve ratio of 10 percent, and excess reserves of $300. Make sure you balance sheet balances.
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
q1. in which of the following cases should the united states produce more noodles than it wants for its own use and
Suppose a computer virus disables the nation’s automatic teller machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand, increasing the demand for money. Assume the Fed does not change the m..
Supply of Loanable Funds, e.g., your disposable and expected future income. Discuss and predict how your decisions and transactions in the loanable funds market should change.
A major employer in a small town announces upcoming major layoffs of employees. What should we expect to happen to the consumption functions of the affected employees.
What would be the equilibrium price? What is the equilibrium quantity? Calculate the deadweight loss created by the tax.
If there are 110 million people working, 5 million discouraged workers, 10 million receiving unemployment insurance benefits, and 15 million officially unemployed, how many people are in the labor force?
Suppose that the government of Tonga decided to impose or place a price floor on all imported chicken products. Elucidate what is the advantage and disadvantage of this policy.
An investor bought a racehorse for $1 million. The horse's average winnings were $700,000 per year, and expenses averaged $200,000 per year. The horse was retired after three years, at which time it was sold to a breeder for $175,000. Assume accelera..
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