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Derive the money multiplier for an economy with the following three types of leakages: (i) a cash-deposit ratio (k) desired by the public; (ii) a legally required reserve-deposit ratio (r) for the banks; and (iii) an excess reserve-deposit ratio (e) desired by the banks. Explain how the development of ATM machines, automatic electronic payment, NETs and internet banking affect the money multiplier.
For each of the following changes, show the effect on the demand curve, and state what will happen to market equilibrium price and quantity in the short run.
What is the marginal rate of substitution for consumer A at the initial allocation? Is the initial allocation Pareto Efficient?
Meanwhile, when opening the 2015 Port Dickson Community Franchise Programme at Seri Kemang Square, here, he said 760 franchise systems.
Explain clearly the effect on the market for apartments in the ret controlled zone. Use diagrams in your answer.
Review what you have learned about business cycles, GDP, unemployment, CPI, monetary policy, and fiscal policy and respond to the following:
From an economic standpoint, evaluate the effect of a minimum wage on the market for low-wage labor. Include the following: Discuss what economic theory predicts will happen. Draw a supply and demand graph illustrating the effect of a minimum wage.
If households decide to save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run? What about the long run, assuming the government does not employ any stabilization policy?
A labor intensive firm in china is faced with rising labor cost. ow is firms productivity affected? Explain & why?
Walmart founder Sam Walton amassed an enormous fortune in discounts retailing one of the most viciously competitive markets imaginable.
Written Assignment China and India have demonstrated trends toward Western-style consumption over the last decade. Given the emphasis on the youth market in the U.S. over the last 60 years (since the baby boom), what can you suggest for marketers in ..
Consider an environment where an agent could be either employed E or unemployed U. Let’s normalize E + U = 1, so that E and U are interpreted as the fraction of people employed and unemployed at any given point in time, respectively. What is the prob..
According to the definition of money and its functions, what strengths and weaknesses are there with the system of using the Rai stones as money?
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