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*Financial Market/Money Market
Assuming that Md=$Y(.85- 3i) and income is $70Billion, the people hold 35% in currency, the reserve ratio is 12% and the monetary base = 15Million. Show the computation for your answer.
1.What is the demand for currency?
2.What is the demand for checkable deposits?
3.What is the demand for reserves?
4.What is the demand for central bank money?
5.What is the overall demand for money?
6.What is the equilibrium level of interest rate?
7.Prove that the overall supply of money is equal to the overall demand for money at the equilibrium level of interest rate.
Two drivers—Tom and Jerry—each drive up to a gas station. Before looking at the price, each places an order. Tom says, “I’d like 10 gallons of gas.” Jerry says, “I’d like $10 worth of gas.” What is each driver’s price elasticity of demand?
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What other numeric information might you want to have in order to discuss the economic recovery adequately?
analyze how the law of demand applies to a recent purchase that you made. describe how the product has changed in price
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Once McDonald's has made its decision about the size of the store it will build, Burger King will decide whether to enter this market. Use the following decision tree to decide the optimal strategy for each company. Does your answer depend on the ..
1. This question refers to income distribution. (1) what is a Lorenz curve? Draw one, labeling the axes (2)Explain why a Lorenz curve can never lie to the left or above the 45 degree line (3)Using a Lorenz curve diagram, explain how to calculate ..
Explain the difference between an endogenous variable and an exogenous variable. Using examples from the national income model outlined in this chapter.
If the Uruguay Round succeeds, some countries will suffer. In what circumstances will the imposition of a quota lead to an increase in import expenditures?
Calculate the marginal propensity to consume (mpc) and then the multiplier in this economy.
While Canadian vaccination rates are high, the outbreaks of measles in five provinces during 2014 show that not everyone is getting them.
What is human capital and why it is important why we do not measure human capital in accounting statements
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