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We have focused on how banks create money. I spoke to a banker the other day; he assured me that he did not create money. In fact, he stated that all he did was provide service to the community by lending whatever funds were available to the local merchants. There seems to be some difference of opinion between bankers and economists. Can you provide insight on this?
Suppose that the required reserve ratio is 6.25%. If the Fed sells $350 million of bonds to the First National Bank. What happens to reserves and the monetary base? What will happen to the money supply? Show the changes in First National Bank's balan..
This problem explores the issue of truthfulness in the Stable Matching Problem and specifically in the Gale-Shapley algorithm. The basic question is: can a man or a woman end up better off by lying about his or her preferences? More concretely, suppo..
According to the rational choice model, cash grants are preferred to food stamps because
Distinguish between explicit and implicit costs, giving examples of each. What are the explicit and implicit costs of attending college? Why does the economist classify normal profit as a cost? Is economic profit a cost of production?
In September 2012, the New York City Board of Health approved Mayor Michael Bloomberg's proposal to ban the sale of large sugary drinks in restaurants and other venues in an attempt to reduce obesity and promote more healthful living. How do you thin..
The demand curve for a particular good indicates the various quantities
Describe and explain the meaning of the “Invisible Hand”. Describe what it does, how it works and benefits.
You are the worksite wellness manager of a health care organization in tight economic times. You realize the organization must make budget cuts. The worksite wellness program seems to be a money pit, and the CFO is encouraging the organizational lead..
Suppose a firm has the following production technology: one worker is required to operate on one machine (capital). More than one worker on the same machine will have a zero MPL. One worker operating on two more machines will also have zero MPK. In t..
Calculate the coefficient of price elasticity (midpoints approach) for Goldsboro's supply. What was Diane's economic profit.
If the price increases by 10 percent, by how much does the quantity of household (a) natural gas and (b) electricity change in the short run and in the long run?
q. abc company expects that it will receive a large order from the spain government. but the order occurs abc will be
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