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1. If the reserve requirement is 20 percent, and banks keep no excess reserves, an increase in an initial inflow of $100 into the banking system will cause an increase in the money supply of:
?$50
?$20
?$100
?$500
2. ?Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model?
?No change in taxes or government spending
An increase in taxes
?A reduction in government spending
?An increase in government spending
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the knife’s edge model?
Suppose that a security costs $3,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities: b: $3,000 $3,300 $3,600 $3,900 $4,200 Probability: 0.1 0.2 0.3 0.2 0.2. Calculate the ex..
If bagels and doughnuts are substitute goods, then which of the following is likely to occur if the price of bagels is reduced?
Compare the effects of an aggregate-demand-induced recession with an aggregate-supply-induced recession.
Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1954? Check all that apply
Why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective?
Illustrate why the store's short-run equilibrium by plotting demand marginal revenue, average total cost,and marginal costs.
Tech engineering inc. makes a consumer product for which the following cost data are available. Determine the breakeven volume unit can be sold for $40. If a net profit of $100,000 is required determine the number of units that needed to be sold.
Support your answer amid an illustration which shown market equilibrium for chocolate bars which comprise x and y interrupts of the curves and label them accordingly.
If the federal reserve uses open market operations to offset a recession the fed------------- government securities in order to ------------the federal funds rate.
President says that wages probably should be cut so that workers could not afford to miss so much work. Evaluate two views utilizing income and substitution effects in your analysis.
Mike finds a Coke machine in an abandoned part of town and is extremely thirsty; The coke machine requires exact change- Two quarters and a dime. No other combination of coins will make anything come out of the machine. Draw a graph that illustrates ..
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