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How does federal deposit insurance encourage greater risk taking by banks? Could the banking system function without government deposit insurance? How? How would you personally be affected if there was no federal deposit insurance? What would you do different?
Illustrtae what is the value of x which will make the manager indifferent among shirking and working hard.
the u.s. trade deficit is currently running over 50 billion per month. explain why this is bad for the country in the
Analyze the relationship among fiscal and monetary policy in an open economy.
Calculate the equilibrium values of consumption expenditureand the Government's budget balance.
Compute the value of the price index for GDP for 2006 using 2005 as base year. By what percent did prices rise?
Assume a country is in a flexible exchange rate regime. Now suppose that the world interest rate falls. Discuss what the policy makers must do to maintain the pegged exchange rate. What is the effect on domestic output, exports, and imports.
Find the maximum of (X1,X2) of F subject to the constraint: P1X1+P2X2 =I (Income), the answer should be a function of (P1,P2,I)
Illustrate what was the economy's biggest risk--inflation or unemployment.
The subsequent table gives total output or total product as a function of labor units used. Does the table indicate a situation of diminishing returns.
Elucidate the policy which change, you would recommend also how this change would be financed.
Use a supply-demand graph to show the implications for the equilibrium prices and quantities of the two flavors of ice cream.
Consider current budget problem of many states. What is it Explain. What are the two basic choices for them to get out of financial trouble Explain the impact of each. Why are some states playing for a federal bailout if needed
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