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If the demand for money depends positively on real income and depends inversely on the nominal interest rate, what will happen to the price level today, if the central bank announces (and people believe) that it will decrease the money growth rate in the future, but it does not change the money supply today?
Why is wage labor completely incompatible with feudalism? Is economic life distinctly separate from social and political life in America? Describe what Smith meant by the “invisible hand.” What is the mechanism by which selfish interests are made com..
Each day Paul, who is in third grade, eats lunch at school. He likes only twinikies (t) and soda (s), and these provide him a utility of utility = U(t,s)=(ts)^1/2. If twinkies cost $0.10 each and soda costs $0.25 per cup, how should paul spend the $..
Suppose that a tax of $28 is levied on each item sold by a monopolist, and as a result, it decides to raise its price by exactly $28. Why might this decision be against its own best interest?
Many people believe that Congress will eventually have to reduce Social Security benefits in order to reduce the budget deficit. Although most of the changes would not take place until later, assume for the purpose of this problem that Social Securit..
Why US banking system is known as fractional Reserve? Why modern ban king systems are known as fractional reserve? What are the characteristics of frictional Reserve banking?
Critically compare and contrast the policy approaches of TSCA and FIFRA. In your view, which of these is more effective in preventing pollution? Explain.
If one country has per capita income of $15, 000 and its economic growth rate is 5 percent per year, what will its per capita income be in 10 years? About how many years will it take to catch up to a country where the per capita income is $30, 000 pe..
Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both McDonald's and Wal-Mart.
In each of the following situations, the possible bundles contain apples and oranges and either 0, 1 or 2 of each. An example bundle would be 2 apples and 1 orange = (2, 1). In each part, there is a description of a set of preferences. If the orderin..
Find the equal annual payment series that would be equivalent to the following increasing series of payments if the interest rate is 12%.
Which of the following is true concerning the consumption habits of ALL levels of government? Which of the following is an example of governmental MANDATORY SPENDING? During which year did the first federal budget surplus occur within the last three ..
Suppose Jimmy says that he is willing to give up three apples in exchange for one banana, or give up one banana in exchange for three apples. Either trade is alright with him. Suppose that apples cost $2 and bananas cost $1. What trade, if any, would..
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