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Use the following table to answer the following question:
Table 1 First National Bank (T-Account) Assets: Liabilities: Reserves: $100, 000 Deposits: $500, 000 Loans: $400, 000
Suppose that in Metropolis there are $500, 000 of currency in circulation. There is also a fractional reserve commercial banking system with a 5% reserve requirement. Assume that the T-account for First National Bank, which is the only commercial bank with excess reserves, is given by table 1. If First National Bank decided to reduce its reserves to only the required amount, by how much would the economy's money supply increase?
A movie theatre has a cost function which entails the rent of the commercial building of $50 per day (fixed cost) and a marginal cost of $5 per viewer. There are eight potential viewers (four of them are students and four of them are not) with buy..
the demand schedule or demand function or curve for a good shows the total quantities q that buyers are willing and
Prepare a two page essay and answer the questions - analyze the behavior of the markets for goods and money for each area.
Define in general the term "internalize the externality" and explain its application in this case. Discuss a policy other than a tax or subidy that could cause individuals to internalize the externality. Explain briefly.
Suppose the market price is $5. The producer who sells the first unit of output has a willingness-to-sell equal to $1; the producer who sells the second unit of output has a willingness-to-sell equal to $2; and the producer who sells the third uni..
A movement along the demand curve to the left may be caused by:
the australian government recently announced its proposed carbon price mechanism. the operation of this scheme is
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Consider the following hypothetical demand schedule for "Tammy Fay" brand Mascara: Qd = 600 - 16? × P Where Qd represents quantity demanded in pounds and P is the price in dollars.
The Lithuanian lita is currently pegged to the euro. Suppose that the Eurozone reduces its money supply. Using the IS-LM-FX model, illustrate and explain how this affects Y, I, C, I, M, and TB in Lithuania (Home).
Problems are an inherent component of our every day life. since we must do something about them, there are a couple of approaches to problem solving. Identify these approaches.
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