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Discussion
Describe the monetary multiplier and the relationship between it and the reserve ratio. An individual bank only makes loans up to the amount of its excess reserves. Suppose it receives a deposit of $1000, if it's required to hold 10% it cannot lend out more than $900. If it does otherwise, it runs the risk of over-extending itself. But we know that we use the multiplier to calculate the loans possible from the entire financial system of banks. Explain why the system is able to create so much money.
If college education generates a positive externality, show graphically the social loss associated with the private market outcome of college education. Are there any interventions that would be useful to address the externality
For this Critical Thinking assignment, you will look at how government policies affect markets. You will have the choice of either picking a relatively short article on government policy or focusing specifically on how minimum wage laws affect lab..
Consider a product with a supply function Q 1 = β 0 + β 1 + u 1, a demand function Q d i =y 0 +u i d . Show that P i and u s d are correlated.
What is the meaning of "GDP measures the size of the pie but not how the pie is divided?" Why is so important? Do you have clear examples to illustrate it?
Assume that income and business taxes are zero and that the repayment of the principal of the loan does not start before three years. What would be the business (accounting) and economic profit if Norita decided to purchase the bakery shop? Shoul..
Elucidate how the following factors will influence India's ability to compete in a highly competitive, rapidly changing global market place.
Would the following events usually lead to capital deepening? Why or why not? a. A weak economy in which businesses become reluctant to make long-term investments in physical capital.
DeBeers Consolidated Mines markets about: 45 percent of the world's rough-cut diamonds. 33 percent of the world's rough-cut diamonds. 80 percent of the world's rough-cut diamonds. 55 percent of the world's rough-cut diamonds.
derive the marginal rate of substitution mrs between x and yuxyaxp1-ayp1puxylnxy uxyxaxalphaybetay
The Mixing of dry powders is normally carried out as a batch process in either vertical or horizontal mixers. Vertical mixers have a movable bowl in which the contents are mixed by mechanical agitation. Paddle agitators are commonly used and the s..
Consider a market that is served by a single producer. This market has significant barriers to entry so the single producer has market power and is not likely to face any competition due to these barriers of entry. You are given the following informa..
Why is the marginal revenue for the monopolist downward sloping?
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