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How will the following actions affect the money supply?
A) A shift of funds from interest-earning checking deposits to money market mutual funds
B) A reduction in the holdings of currency by the general public because debit cards have become more popular and widely accepted
C) The shift of funds from money market mutual funds into stock and bond mutual funds because the fees to invest in the latter have declined.
Consider an income guarantee (traditional means–tested) program with an income guarantee of $5,000 and a phase out rate of 25%. This means that individuals always have at least $5,000 in disposable income but lose 25 cents of the income guarantee for..
q.throughout history the most popular form of money has been gold.a. provide 3 reasons why gold has been such a popular
In a city, the Taxi industry is regulated by the Government Taxi Authority. A company can only supply taxi services, if it is issued a licence by the Government taxi Authority. Suppose that the Government Taxi Authority issues two licenses, to Big Be..
A perfectly competitive rm produces output q with capital K and labor L according to the production function: q = f(K; L) = 4K 1 4L 1 4 The price of labor is w = 4, and the price of capital is r = 4. Prove that this production function has decreasing..
State whether the following describes marginal cost, average total cost, average variable cost, or average fixed cost. (Note: some statements may describe more than one cost curve.)
What is the capitalized equivalent cost of a dam that will cost $25 million now and will require $2 million in maintenance annually? The effective annual rate is 12%.
Write a 1- to 2-page paper identifying the various parts of your chosen country’s Political Economy. Explain how this system developed over time and any changes you may foresee for the near future. Cite resources as appropriate to support your commen..
If you want to make four equal payments on each January 1 from 2013 through 2016 to accumulate the $1,000, how large must each payment be.
There are n identical firms that produce microprocessor chips. Market demand is P = 1500 − Q and the cost to produce each chip is $300. Find the Cournot Equilibrium output by each firm, and the market price. How much profit does the merged firm make?..
Illustrate what government body makes fiscal decisions. Policy makers for national fiscal policies. Explain the effects of fiscal policies.
Suppose that you are the economic advisor to a local government that has to deal with a politically embarrassing surplus that was caused by a price floor that the government recently imposed. Your first suggestion is to get rid of the price floor, bu..
In a perfectly competitive industry in which firms have U-shaped average cost curves, the long-run market supply curve is a horizontal line. This market supply curve is not the horizontal sum of individual firms’ long-run supply curves.
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