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Assume that the reserve requirement is 5%. All other things equal, will the money supply expand more if the Federal Reserve busy $2,000 worth of bonds or if someone deposits in a bank $2,000 that he had been hiding in his cookie jar? If one creates more, how much more does it create
Define unemployment. Should everyone who does not hold a job be considered "unemployed" To help with your answer, draw a supply and demand diagram depicting the labor market. What is measured along the demand curve
Think the market for new, single family house in Miami. The general demand function for new housing in Miami is anticipated to be Qd =15 - 2P + 0.05M + 0.10R,
For each restaurant, write profit as a function of Px and Py and find the best response functions of the two restaurants.
Illustrate the following situations using supply and demand curves for money. No graph needed only state what will happen to the supply and/ or demand curves for money and what will happen to the equilibrium interest rate.
Now suppose this game is to be played an unknown number of times. Both firms know that there is a probability .1 that the current play of the game will be the last time the game will be played. So there is a probability 1.0 that the game will be p..
A profitable company making earthmoving equipment is considering an investment of $100,000 on equipment that will have a 5-year useful life and a $20,000 salvage value. If money is worth 10%, what is the difference in Net Present Worth of the de..
Associate a current event article which relates to government regulations or antitrust activities.
Illustrate the stated direction of recent monetary policy. What recent actions have the Federal Reserve taken to confirm that direction
Suppose that the real interest rates are equalized in the two countries and that purchasing-power parity holds. Using the Fisher equation, what can infer about expected inflation in Canada and in the United States
Many economists are worried that a high level of budget deficits may lead to inflationary monetary policies in the future. Could these budget deficits have an effect on the current rate of inflation?
(a) What is mean by that Explain "strategic behavior" and relate that to the "Kinked Demand" model of oligopoly.(b) Explain the importance of mergers in oligopolistic markets. Is there much price competition in an oligopolistic market
Explain why a firm should continue to operate in the short run so long as market price is greater the firm's average variable cost at the profit-maximizing level of output.
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