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If the Fed orders a contractionary monetary policy, describe what will happen to the following.
a. The money supply
b. Interest rates
c. Investment
d. Consumption
e. Net Exports
f. The aggregate demand curve
g. Real GDP
h. The price level
Explain what would happen to the demand for Motorola picture phones if the price of digital cameras rose
Suppose the Fed decided to purchase $30 billion worth of government securities in the open market. What impact would this action have on the economy?
Explain how should she reallocate her expenditures among the two goods.
Also assume that the countries are otherwise the same: they have the same saving rate, the same depreciation rate, the same population growth rate, and the same technological progress. Both countries are described by the Solow model and are in thei..
Which of the following statements regarding price level or inflation is correct A) Supply and demand can not explain why a particular good or service becomes more expensive relative to other goods and services. B) Inflation affects only the more ad..
Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.
A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course the owners have asked for your opin..
Compute the income elasticity of demand for product below, by using average values for quantities and incomes.
Most customer oppose these laws because they find Sunday afternoon a good time to shop, however retail trade associations support these laws.
Denote by mi the median favorite position among the citizens of state i, for i = 1,2; assume that m2
Consider two firms competing in prices and selling a homogeneous product. The market demand curve is p = 100 - q and the constant marginal costs of the two firms are 10 and 20 respectively. Also, suppose all prices should be integer numbers.
Joan is deciding where to spend her spring break. If she goes to Cancun, Mexico, the trip will give her 9,000 utils of satisfaction and will cost her $300. If, instead, she travels to Florida, the trip will give her 5,000 utils of pleasure and w..
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