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1. How does an increase in the currency-deposit ratio affect the money multiplier? What is the effect of an increase in the reserve-deposit ratio? Explain the direction of changes in both cases in terms of bank balance sheets and the ability of banks to respond to these changes.
2. “In order to keep national income stable, the Fed has to purchase government securities whenever interest rates rise.” Comment on this statement with the help of an IS-LM diagram. Consider two separate cases of interest rate increases and compare Fed policies in each.
Which component of GDP is the most stable. Look for the smallest change from the year with the smallest contribution to GDP to the year with the largest contribution.
Listing different orderings and coalitions is not going to work for this problem because there are too many possibilities, excluding you can use different tools which we have discussed in class.
Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
What role does depreciation play in the Solow growth model? How would a decrease in the rate of depreciation (?) change the steady state level of capital and output? Illustrate using a diagram of the Solow Equilibrium. How would the model’s conclusio..
Assume that the market wage rate is $150 per day. Illustrate what rule should leadbelly follow to hire the profit-maximizing amount of labor.
which revealed that the buyers were, on average, willing to pay a premium of $295 for an IBM computer.
How does the government decide on the amount of pollution to allow? What are the potential costs and benefits associated with the regulation of pollution? What are the potential problems associated with employing outright regulation to deal with poll..
q.the new york times reported that the inability of opec to agree last week to cut production has sent the oil market
If we had efficiency in the duopoly, what would the market quantity and price be? How does this compare to your answer?
During the working life, how do you graph that without knowing more information.
What should the government limit the number of auto and parts makers, the competition for would be limited. Please explain more on this subject.
Consider the role of discount rates in problems involving long time horizons. Suppose that a particular emission abatement strategy would result in a 50 billion reduction in damages 50 years into the future. Calculate the maximum amount that could be..
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