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Using the model of supply and demand curves in the market for money, explain the response of interest rates to the expansionary business cycle. (Given that other variables including money supply keep constant)
(1) Draft a chart to describe the response of interest rates to the expansionary business cycle (2%)
(2) Does demand curve for money shift to the left or the right? Why? (2% )
(3) Finally, will interest rates increase or decrease? Why?
What are the three main descripive statistics for describing a set of data?
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Explain the effects of each of each of the following factors on the economy’s price level and real GDP. Illustrate your explanations with appropriate diagrams.
Assume that he receives 4 points for an A, 3 for a B, and so on. What measure of location did you just calculate?
The demand curve for a product is estimated to be given by the expression: q = 200 − π Calculate the price and the price elasticity of the demand for the following values of the demand: 0, 50, 100, 150 and 200. Repeat these calculations for the case ..
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Assume that the six-month forward exchange rate between the US dollar and the euro today is $1.22 per euro. Assume also that the spot rate is $1.10 per euro. Then we can say that the euro is trading at a
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Jane loves to spend her free time making jewelry. Her favorite two pieces of jewelry to make are necklaces and bracelets. It takes Jane 1 hour to make a necklace and 45 minutes to make a bracelet. Assume that she has more than enough supplies to last..
What would happen in this market? If consumers’ expectations were such that they were concerned about the economy and jobs, what would you think would happen in this market?
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