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How does the emergence of interest-rate risk help explain financial? innovation?
A. It decreases the demand for new financial innovation because these products are often risky.
B. It allows financial institutions to avoid the limits set on the interest rate paid on time deposits.
C. It increases the demand for financial products and services that could reduce that risk.
D. It increases profits for financial institutions and thus increases the supply of new financial instruments.
Supply-side policy is based on the assumption that people's economic behavior is not affected by taxes. Interest rate differentials can cause rapid fluctuations in short-run exchange rates. In general, speculators tend to make a floating exchange rat..
After reading about the Golden Standard, William Jennings Bryan's emotional speech, write an essay analyzing what might have happened if William had won the the 1886 election in the United States?
Patents allow a company to have a monopoly for a period of time. Monopolies result in lower quantity supplied and higher prices to consumers. Do you think companies should be allowed to obtain a patent on a product or not?
what hypothesis we can use to show whether the change in female literacy rate in both the models is significant or not.
q1. derive step by step the steady state level of capital and output per worker for each one of the models below basic
After the aggregate demand decreases in part “a” above, what kind of a demand-management policy would a typical liberal economist propose, an active policy or do nothing? How about a conservative economist? What justifications would they provide for ..
Explain how much tax revenue does this tax create. Illustrate what proportion of the tax is borne by consumers.
Explain and graphically illustrate the effects of the tax cut on aggregate output, consumption, employment and the real wage.
1. In the market for a particular good, at a price of $26, the quantity demanded is 300 and the quantity supplied is 450. Which of the following is true?
A Monetary History of the United States, 1867-1960 uncovered the empirical reality that money is pro-cyclical and leading, the classical economists went to the drawing board.
Explain the role of the Federal Reserve, who monitors it and is it effective in its job? Evaluate one of the strategies of the Federal Reserve
Illustrate what is area of employment why has this shift occurred in illustrate what direction would shift in labour supply and demand go. Illustrate what would be its effect on equilibrium of labour market.
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