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Economists occasionally speak of “helicopter money” as a short-hand approach to explaining increases in the money supply. Suppose the Governor of the Fed flies over the country in a helicopter dropping 10,000,000 in newly printed $100 bills (a total of $1billion). By how much will the money supply increase if, holding everything else constant:
1. All of the new bills are deposited in banks that practice 100-percent-reserve banking?
2. All of the new bills are deposited in banks that choose to hold 20 percent of their deposits as reserves (and no one in the economy holds any currency)?
3. All of the new bills are held by the public?
4. People in the economy hold half of their money as currency and half as deposits, while banks choose to hold 20 percent of their deposits as reserves?
Calculate the profit-maximizing price/output combination for oil and gas under current conditions.
1. a study of the costs of electricity generation for a sample of 112 british firms innbsp 1946 - 1947 yielded the
Three students have each saved $1000. Each has an investment opportunity in which she can invest up to $2000. Here are the rates of return on the students' investment projects: Minji: 5% Yanrong: 8% Dorothy: 20%
honda uses flexible plans in the manufacturing of its cars. discuss whether this method of production results in
Presume as a manager of a profitable department store you are confronted with a pricing problem. You have two types of consumers: a high-end type that are willing to pay a price of $20 for a pair of Levis Jeans, and a low-end type consumer that are w..
Suppose you have the following demand function for the good x: x* = 80(py/px) - 0.5I. Are goods x and y complements or substitutes? How do you know?. Does good x demand satisfy the first law of demand? Why or why not?
select a product produced in the u.s. and a foreign country which you are familiar from the e-activity. determine if
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suppose you have two types of customers. type 1 customers typically purchases your firms product in bundles of 100
Is this measure stabilizing or destabilizing. Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on the size of the federal deficit.
is water a renewable or depletable resource? explain how water is allocated in the western us and how this may result
Determine the price elasticity, and income elasticity of demand and where Q denotes passengers in thousands per year, P the (average) ticket price, and I US national income.
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