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Suppose ha he money demand function is (M/P)d =1000-100r, where r is he interest rate in percent. the money supply M is 1000 and the price level P is N$2.
a) Graph the supply and demand for real money balances.
b) What is the equilibrium interest rate?
c) Assume that the price level is fixed. what happens to the equilibrium interest rate if the supply of money is raised by 39%?
d) If the Fed wishes to raise the interest rate to 7%, what money supply should it set?
What market forces prevent absolute PPP from holding in real economies? Which of these represent unexploited profit opportunities?
The subsidy ends when the money income with program participation equals the money income earned without the program. A simplified version of this type of program is one that would give this single parent a $40 grant accompanied.
A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming it wants to raise revenue.
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If we assume most of the crime results from drug addicts stealing to buy drugs, what would happen to the amount of drug use and the amount of theft if we increased education programs to inform potential drug users about the dangers of drugs
Why is it necessary for all economic system to not only provide poepl with goods and services but also restricts them from getting as much of these goods and services as they wish?
Elucidate tools used to pursue expansionary and contractionary fiscal policy.
Explain why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.
If there are n firms in the industry, find expressions for the competitive equilibrium price and quantity. What is the equation for how much each firm produces? What is the equation for the profit of each firm? [Hint: Your answer should be 4 algebrai..
A bank has $120 million in total assets, which are composed of reserves, loans, and securities. its only liabilities are $120 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total reserves equal $6 millio..
1. Define the family as a social institution 2. Identify and discuss the basic concepts surrounding family
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