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Using a graph of the market for reserves, demonstrate how an increase in the interest on reserves can be used to raise the federal funds rate. Label all axes, variables, curves, and initial/?nal equilibrium. Brie?y explain the change. (could u plz show me the clear graph?)
In 1999, there was broad concern about the Y2K computer problem. Banks, and the Fed, predicted that many people would want to hold additional cash in case software glitches blocked access to their bank accounts on January 1, 2000. What happens to the..
Black men earn an average of 21% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against black men should consider whether black and white men have similar
Suppose that the production of $1 million worth of steel in Canada requires $100,000 worth of taconite. Canada’s nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Calculate the effective rate of prot..
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
“A subsidy may provide import-competing producers the same degree of protection as tariffs or quotas but at a lower cost in terms of national welfare.” Discuss – in what sense is this statement correct? In what sense might it not be correct?
Discuss the types of barriers to entry, and explain whether each type is likely to provide long-term monopoly power. What are the allocative and distributive differences between monopoly and perfect competition? What causes these differences?
A petroleum refining and recovery service company, Cowboy Enterprises, purchased $13,790 worth of equipment for reconditioning fuels in its storage tanks. The equipment has a functional life of 14 years and a salvage value of 5% of the purchased pric..
Elucidate why the equilibria found in part (a) are only short-run equilibria. What will happen in the long run.
Consider the iron ore production industry, and assume that there are just two producers, FM and BHP. Initially assume that both firms are identical in terms of their production costs. If the two firms can cooperate, what should they do in order to ma..
Estimate cost elasticity of demand for education at this university. Is cost elasticity of demand for university tuition elastic or inelastic according to answer in part (i) Why.
Jim wants to buy some electronic equipment for $1,106. Jim has decided to save a uniform amount at the end of each month so that he will have the required $1,106 at the end of one year. The local credit union pays 1/2% interest per month. How much do..
Suppose the U.S. government was able to determine which industries would grow the most rapidly over the next 20 years. Explain why this doesn’t necessarily mean there should be a policy to support the growth of these industries. Analyze the disadvant..
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