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What's your answer about the equilibrium change from an event which decreases both demand and supply? You don't need to provide graph here. Just describe the curve shifts and how the equilibrium price and equilibrium quantity change.
Suppose that consumption expenditures, investment expenditures, and government purchases are 75 billion, 25 billion and 20 billion, respectively. How large should the GDP be so that the net export is zero?
Clearly define “crowding out” and economic effects. Graphically illustrate the level of crowding out in an IS-LM model. Explain in detail how the interest elasticity of investment affects the level of crowding out. Be sure to explain why this is the ..
In what sense does the Fed "create money"? Suppose that the minimum required reserve ratio for banks was 1/11. Also suppose that banks held no excess reserves and that currency in circulation was unchanged. What action in the Treasury bill market wou..
What is the important difference between the current account and the capital account, given that the sum of the two values must equal 0?
An example of featherbedding is advertising that encourages consumers to buy union-made goods.
How much do you have to deposit today in order to allow 9 annual withdrawals, beginning at the end of year 17, with a first withdrawal of $1748 and with subsequent withdrawals decreasing at the rate of 4% over the previous year’s withdrawal? Assume a..
Using the simple household model C=[C(0)]+[C(1)]*(Y-t), assume that C(0) is $1000, taxes are $100, and C(1) is .5. What would be the impact on consumption spending if household incomes were to rise by $500? (Ignore the multiplier effects here.) What ..
what will be the value of the lost revenue after a 3-year period at an interest rate of 11.940397% per year, compounded continuously?
Explain the benefits of a market economy. What is to be produced? How are the goods to be produced? For whom are the goods produced?
What fraction x of your money should you invest in risky asset in order to maximize your utility. What happens if A is large.
Check all of the following that characterize the supervision provided at your center or workplace most of the time: Provides support and helpful feedback. __ Hard to please __ Unavailable. _____ Conducts fair evaluations of staff
Suppose that excess reserves in the Stranda National Bank are $15,000 and the reserve requirement is 4 percent. Illustrate about the maximum amount that the money supply can be increased is.
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