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Q1. Explain the differences between commodity money and fiat money, making sure to explain what makes fiat money work.
Q2. Describe the money multiplier. Identify the change to the money supply in the following situation: The required reserve ratio is 12.5 percent and the Fed increases the monetary base by $100.
Q3. Explain the monetary policy tools the Fed can use to affect the monetary base.
Q4. Compare and contrast expansionary and contractionary monetary policies.
Q5. Identify and explain the means by which the Fed can affect the money multiplier. How do changes in policy carry through to the economy?
Suppose that two years ago, you purchased a Jeep Wrangler SE 4WD with a soft top for $16,500 using five year interest-free financing.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
Who has the responsibility to decrease or eliminate unemployment. What is the role of business
Explain why is there free trade among states in the United States but not necessarily among countries.
Elucidate the difference between the government purchases multiplier and the net tax multiplier. If the MPC falls, what happens to the tax multiplier.
Explain how the below game should be set-up, played and solved a consumer decide.
Paradox Dental, Limited., enjoys a local monopoly in provision of oral examination services in Tuskegee, Alabama. Total and marginal revenue relations for standard procedure are:
The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run and long-run perspective.
Compute the price or output combination and the total economic profits which would result if competitors offer clones which make the QuickerBetter market competitive.
Elucidate the increasing returns to scale as a basis for international trade. Be sure that you define the relevant concepts, describe important features of such trade, and contrast these features with those of trade due to other causes.
Explain why you would be more or less willing to buy a share of Apple Computers stock in the following situations:
Below are events that might affect supply of money, the demand for money, or the interest rate. Explain how each event may affect these three economic variables.
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