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Suppose that the reserve requirement is 10% and the balance sheet of the People's National bank looks like the accompanying example.
a.) What are the required reserves of People's National Bank? Does the bank have any excess reserves?
b.) What is the maximum loan that the bank could extend?
c.) Indicate how the bank's balance sheet would be altered if it extended this loan?
d.) Suppose that the required reserves were 20%. If this were the case, would the bank be in a position to extend any additional loans? Explain?
Assume the government sets a price ceiling below the Pe. Plot this price ceiling price on your diagram. What is the new market situation How will it be decided who can buy the quantity supplied of gasoline
This is a self-reflection paper developed based on the classroom discussion around minimum wage. Explain the effect minimum wage has on the economy. List and describe both the pros and cons of the more recent increases in the federal minimum wage...
Contrast the market demand/supply curves and the individual firm's labor supply/demand curve in a perfectly competitive labor market. How does the law of diminishing marginal returns affect a firm's demand for labor
What is the economic term for productive resources that provide a means for society to produce and distribute its goods.
Advanced MUa = z=10-x and MUb = z = 21 - 2y, where z in marginal utility per dollar in the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B
Imagine a world with two individuals, a rich one denoted by R, and a poor one denoted by P. Both individuals consume gas, and their demands are given by QR = 100 - 0.5P and QP = 60-P respectively, where P is the price of gas, and QR and QP are..
Pick a good or service you are familiar with. Speculate how the price for that good or service may have been set and how well this price maximizes profit for the company and determine what shifts the company should make in its pricing strategy.
toms pizza sells for 5.00 ea and serves an average of 425 customers per week. during a recent sale tom lowered the
find the equilibrium price and quantity of cigarette packs and what is the price received by producers? The price paid by the consumers? The new market quantity?
panther airlines pa is the only airline that flies several routes. they have a potential competitor leopard airlines la
What will be the scale effect of this change on use of capital and labor and why? How would this be shown on an isoquant diagram? ( a diagram isnt needed here either.)What will be the net or total effect of this decline in the cost of capital on th..
Suppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Assume that the demand curve for the industry is given by P = 100- Q and that each firm expects the ot..
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