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Suppose chartered banks decide to greatly reduce the availability of student loans that are guaranteed against default by the Canadian government.
a) What would you expect to happen to the demand for credit cards by students?
b) What would you expect to happen to the quantity of credit cards issued to students? To the willingness of students to incur debt at the much higher rates of interest charged on credit cards?
Principles of Microeconomics, Frank, Bernanke, Osberg, Cross, Maclean, Chapter 4, Problem Question 4.
Antitrust legislation is an attempt by government to make competition
Most projects completed using traditional project management are done in a weak matrix organization. Most projects completed in an agile project management framework use a strong matrix or pure project environment. Why is this so?
What is the Law of Diminishing Returns. Discuss a company's two short run options: 1. stay open or 2. shut down.
Entrepreneurship has become the new way of doing business in our world. With economies in decline and organizations downsizing and the lack of opportunities that satisfy, entrepreneurship has been born.
What is the indicator status of the Private Nonresidential Fixed Investment? Explain. What is the indicator status of Business Permits and Housing Starts? Explain.
Consider now an economy where you need to search for a job. Let b be the fraction of people that do not have a job and are searching for one. Write the equations describing the dynamics of those employed (E) and those who are not employed (NE). Compu..
Studies indicate that the changes in fiscal and monetary policy affect the 3 economic agents in the economy (households, firms and government). How do the changes in monetary and fiscal policy instruments affect you personally or work wise?
An increase in the supply of a product can be shown graphically as a rightward shift of the supply curve. The graph will clearly show that we would expect the equilibrium price to fall and the equilibrium quantity to increase. Use a general solution ..
Smith Services, Inc., was a corporation solely owned by Tony Smith. Bear, Inc., owned and operated Laker Express, a fueling station in Kentucky. Smith charged fuel to an account at Laker Express and owed approximately $35,000. There was no written ag..
Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli. Which tribe has the comparative advantage in spaghetti production? Which tribe has the compa..
Explain is it possible for the new long-run equilibrium price to be above the original long-run equliibrium price.
The world Trade organization either a. requires members to charge the same prices on goods traded internationally or b. requires members to reduce tariffs and eliminate non tariff barriers?
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