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Suppose that a country initially had no banks,but did have currency of $10 million.The country then established a banking system with a reserve requirement of 5% and the citizens of the country deposited half of the currency into the banking system. If its banks do not hold excess reserves what is the countries money supply now?
In a pure capitalist system where free markets exist, freedom of enterprise and freedom of choice exist. However, if one chooses to produce
You will select two related economic variables of macroeconomics ( Consumption Investments and Inventory, Natural Resources
Discussion Board Debate: "Should the Federal Reserve aim at a zero inflation policy?" Explanation: Virtually all economists agree that high inflation rates are disruptive. Economies experiencing double-digit inflation rates tend to have lower growth ..
Suppose the cross elasticity of demand for products A and B is +3.6 and for products C and D is -5.4. What can you conclude about how products A and B are related? Products C and D?
Uwe Reinhardt, an economist at Princeton University, wrote the following in a column in the New York Times: [Cost-effectiveness analysis]
Suppose the supply curve of medical services is perfectly inelastic. What is the shape of supply curve (e.g. vertical, horizontal, upward sloping)?
Decreasing returns to scale refers to a situation where an increase in a firm's scale of production leads to lower costs every unit produced.
If it wants to accomplish this change in the money supply using open-market operations, what should it do.
What is the mechanism in the Solow model that generates growth? Why is this an appealing mechanism? Why does it fail to deliver economic growth in the long run
Firm C&D is a monopolist both in the US market and in the international market. The demand curve for the US market is QUS = 10 − PUS and the demand curve for the international market is QI =20−PI. The firm’s cost function is C(Q)=2Q+2. Suppose the fi..
Which of the following would not lead to a shift of the demand curve for apples?
What are the financial markets and what purposes do they serve? What are financial intermediaries? How do these intermediaries function in the economy? What is a federal government budget deficit? What is the national debt? How does a budget deficit ..
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