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Suppose a country the total holdings of banks were as follows:Required reserves = $45 millionExcess reserves = $15 millionDeposits = $750 millionLoans = $600 millionTreasury bonds = $90 million
Show that the balance sheet balances if these are the only assets and liabilities.
Assuming that people hold no currency, what happens to each of these values if the central bank changes the reserve requirement ratio to 3%, banks still want to hold the same percentage of excess reserves, and banks dont change their holdings of Treasury bonds? How much does the money supply change by?
If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.
Illustrate what amount of profit does the industry fail to pick up by refusing to increase output by one unit
EXplain what is the short-run condition for the monopolist and what output changes would you recommend.
Explicate how these projected deficits will affect the US Stock and bonds. Could you explicate briefly this question thank you.
Elucidate how much the last input added to the total amount of revenue. Elucidate how much the last input added to the total amount of production.
The Honolulu tourism commission currently proposed a 7% tax on hotel rooms to pay for an outdoor amphitheater.
Extend this comparison by choosing a different point on this period's PPF and discuss whether that combination leads to more or less growth over the next period.
Homo sapiens production possibilities curve have shifted outward to the right much more rapidly than that of Neanderthals
If the government imposes a ceiling of $6 on the price of the firm's product, Illustrate what output will the firm produce also Illustrate what will be total profits.
Illustrate what is the mechanism by which an aggregate demand recession is transmitted from one country to another.
Demonstrate provide/demand curves also equilibrium for the USA, assuming no imports.
Does consumer surplus increase due to this price ceiling. Does social welfare increase as a result of the price ceiling.
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