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All other factors held constant, what would be the effect on the demand for money (M1) of each of the following situations. Explain the rationale behind your responses.
1. An increase in real GDP
2. An increase in general price levels
3. A rise in the interest rate on savings accounts and Treasury securities
4. A doubling of all prices, wages, and incomes
Competitive industry, market determined price =$12, Output = 50 units, ATC = $10, Marginal cost = $15, AVC = $7-Is this firm making the right profit maximizing decision? If yes, why and if not, what should this firm do?
What market structure is used to benchmark allocative efficiency and why do we use it? Illustrate and explain using a diagram
The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs.
Why do people hold their wealth in the form of money rather than another asset that will provide a rate of return higher that the rate on return
Assume that you get a summer intern job and a recession start while you are there. Prepare a memo to your boss, who is a member of Congress,
Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
The difference between the average earnings of eye surgeons and those of janitors is an example of
Developing a regression model with Sample Regression Model
Choose either the European Union or the North American Free Trade Arrangement, and answer the given questions based on your choice:
Cost-Plus Pricing. Wendel Stove Company is developing a "professional" model stove aimed at the home market. The company estimates that variable costs will be $2,000 per unit and fixed costs will be $10,000,000 per year.
Suppose the central bank conducts an unusually large open market purchase of bonds held by banks of $1,400B due to a sharp contraction in the economy. Assume the ratios you calculated in part (a) remain unchanged, what do you predict will be the e..
Can both monopolies continue endlessly? Why or why not for each example and what factors could cause the monopolies to end?
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