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1. For Keynes, the speculative component of money demand was volatile. This made the demand for money and the money multiplier volatile, so that monetary policy became an unreliable tool for stabilization. What were Keynes's reasons for his assertion on volatility? Do you think such volatility exists in the modern economy? Has it increased or decreased over time?
2. For Friedman, the money-demand function was highly stable. This made the money- income multiplier highly stable, so that changes in the money supply had a strong impact on nominal national income. What were Friedman's reasons for his assertion on the stability of money demand?
Has the money demand function in recent years been stable in the sense of not possessing the type of volatility asserted by Keynes? Discuss.
In many economies in recent decades, the money-demand function has shifted over time due to ?nancial innovations. Have these shifts invalidated Friedman's assertion, or is this instability of a different kind from what Friedman and Keynes had in mind?
"Oligopolies have a negative impact on income distribution." Do you agree or disagree? Provide justification for our response.
Discusses role of government on fostering intermodal transport innovations. The author suggests that the US government should be the catalyst for innovations in intermodal transportation. He argues that industry, in a free market economy, has ..
Why would cash transfers typically be preferred by recipients over in-kind transfers - Who gains and who loses from a tariff.
3. Xander Harris is considering whether to buy a corn and soybean farm in Iowa. The farm will cost $800,000, and Xander will be able to pay this from profits his recently deceased mother made on the stock market and willed to him. He estimates ..
How will managers of a monopolistically competitive firm decide on the optimal level of production? Elucidate. Explain market forces that come into play in the short run if a monopolistically competitive firm is making a positive economic profit. How..
Using the Federal Reserve's report (see link below) on Money Stock Measures for June 7, 2012 determine the growth rate of the Seasonally Adjusted M1 Money Supply between January 2011 and January 2012.
What is the difference between rational expectations and adaptive expectorations?
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
patricia is researching venues for a restaurant business. she is evaluating three major attributes that she considers
Write a 4-6 page (12-point font, double-spaced) essay evaluating the role of governments in assuring that developing countries obtain a fair and adequate share of the benefits of international trade.
Determine the mariginal product. Determine the average product function. Find the value of L that maximizes QFind the value of L at which the marginal product function takes on its maximum value.
An airline ticket costs the same from Casper, Wyoming to Denver, Colorado, and from Denver to Orlando, Florida. Does this make economic sense? Describe the rationale behind equal prices for unequal distances in air travel using supply, cost curves an..
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