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(a.) Reserve requirement for banks is set at 5%. Your firm deposits its profits of $28,000 into the Third National Bank.
How much excess reserve does your deposit generate for the bank?
What is the maximum amount of new money that can be created in the banking system as a result of this deposit? Show all work.
(b.) What is the Federal Funds Rate in the banking system?
Explain how the Fed manipulates this rate in order to achieve macroeconomic objectives.
How much is the uniform annual revenue in years 2 through 5 to achieve economic equivalence if the company decides to use MARR.
Illustrate what happens to official measure of GDP when air quality improves significantly in united states but there are no effects on aggregate production or on market prices of final goods and services.
Suppose banks keep no excess reserve and no individuals or firms hold on to cash. If someone suddenly discovers $12 million in buried treasure and deposits it in a bank, elucidate what will happen to the money supply if the required reserve is 10 ..
The player averages 5 rebounds and 20 points per game. Explain to the general manager of your team whether or not to sign the player.
David black, representing the management of the automobile manufacturers disagreed with McDonald's assessment. Black cited studies that indicated price elasticity's ranging from 0.5 to 1.5.
How do the GDP per capita change after accounting for price indices. Why is it important to use price index adjustments.
Illustrate what is her economic profit or economic loss. What happens to demand for labor. What are the new equilibrium wage rate and employment level.
Expand his shop in that way allowing more customers to be served on a Saturday morning?
Elucidate a personal daily struggle that is an example of the law of noncontradiction and the challenges posed to your beliefs and decisions.
Explain how the market will respond to the new product. If demand is high, then it's worthwhile to make the extra investment for special facilities also equipment needed to produce the component internally.
Illustrate what two policies could you use to reduce the total amount of emissions.
Assume income is $10, the price of each slice of pizza is $1, and the price of each glass of beer is $2. Now change income to $12 and show a demand curve for pizza.
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