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While Bob was walking in the park, he found a $ 100 bill. Not finding the owner, he decided to deposit it in his checking account. The banks have no excess reserves and required reserve ratio is 25 %
a. How did it change M1 initially?
b.How much money can his bank lend out initially?
c.How much total money supply will change eventually in the whole banking system?
Currently, the economy is in equilibrium at Q = 3200 (where Q = potential GDP) and P = 100. You can use monetary and fiscal policies to affect aggregate demand but you cannot affect aggregate supply in the short run.
Discuss and explain the major barriers to entry into a industry. Describe how each barrier can foster monopoly or oligopoly.
what advice would you give as the economic analysis team and Your client states that it is worth $4,000 annually to be his own boss and not be a butcher any more. Would that change your advice? How and why?
What are some explanations for the coordination failures that prevent workers and employers from reaching agreements?
Describe the difference between average revenue and marginal revenue .why are both of these revenue measures important to a profit-maximizing firm?
The present value of the gain from employing the new factory must be less or equal to $50 million and the rate of return from the new factory must be greater than 7%.
How does price elasticity of demand affect how much of a tax is passed on to the consumer and how much is absorbed by the seller. Show the effect with graphs.
Examine your Y data (excluding the hold out period) to determine if it needs to be differenced to make it stationary. Show a time series plot of the raw Y data and autocorrelation functions (ACFs).
Briefly explain whether you agree with the following statement: "If at the current quantity marginal benefit is greater than marginal cost, there will be a deadweight loss in the market.
Elasticity of demand for each of the following showing all calculations and
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees?
Using a separate supply and demand diagram for each part, illustrate the effect of value of the yen in terms of dollars of each of the following;
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