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How to derive the IS curve? What is the determinants of its slope and its position.
Identify the range of output exhibiting increasing returns (increasing MP), and the range exhibiting diminishing returns (decreasing MP).
Elmo finds himself at a Coke machine on a hot and dusty Sunday. The Coke machine requires exact change—two quarters and a dime. No other combination of coins will make anything come out of the machine. No stores are open; no one is in sight. What hap..
Imagine you are in charge of development for a developing country and were approached by a multinational corporation interested in locating in your country. Identify some of the benefits and some of the costs to the host country from allowing a multi..
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
Governments build highways and provide medical care, welfare, border security, schools and education. If the market is such an efficient and beneficial mechanism, why isn’t it universally relied on? Explain
How will the real interest rate affect the cost of your car loan? Let’s assume that the old clunker you have been driving needs $500 in repairs in order to pass an annual car inspection. The lowest interest rate you find on a five-year car loan is 10..
In a world where the public holds no currency but where banks keep fractional reserves against deposit liabilities, explain how an injection of new base--say from The Fed’s purchase of securities-- lead to new M1 which is a multiple of the new base. ..
Use the information above to answer the following questions. [Hint: ignore that value of Dane's extraterrestrial paraphernalia]
From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $14 million in withdrawals from other banks’ ATM machines. Estimates suggest t..
It is not possible to maximize profits by using a markup pricing strategy. To maximize profit, a firm should apply a uniform markup to each product it sells. Using markup pricing is more complicated than simply setting price equal to marginal cost.
The owner of an exhaustible resource should ________ current extraction rate if the expected price increase of the resource is ________ the interest rate.
What are the advantages of buying a business rather than starting one from scratch? What are the advantages and disadvantages of owning a franchise?
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