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1. Explain how the use of "hot money" has affected banks’ liquidity risk?
2. Is time warner cable an example of an oligopoly in terms of pricing power? Why?
3. In your opinion, are you better off saving money or spending money ( in economic perspective)?
4. Is Rochester Gas and Electric an example of a monopoly in terms of pricing power? How?
If Sean's Fire Engines were a competitive firm instead and $125,000 were the market price for an engine, decreasing its price from $125,000 to $75,000 would result in an increase in production quantity and total revenue.
Discuss and explain the following questions using knowledge about the dynamics of Aggregate Demand and Aggregate Supply Model. What is the cause of the 2007-09 Great recession? What happened to aggregate demand and aggregate supply model during this ..
Participate in a discussion with your classmates regarding where you see the U.S. economy in its business cycle right now, as based on the economic concepts in the textbook. Now that we learned that the real business cycle results from fluctuations i..
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 4%, the growth rate of the velocity of money is 3% and that the real economic growth rate i..
A domestic subsidy to enable an industry to compete against imports:
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.
Moving along a demand curve, the quantity demanded decreases 8 percent when price increases 10 percent. Find the arc price elasticity of demand over the price range from $3 to $7. Interpret the value of price elasticity.
What would happen to the demand curve in each of the following cases:
q1. the number of taxicabs in motorville and the taxicab fares are regulated. the fare currently charged is 5 a ride.
When enacting fiscal policy, the form such policies take is often at issue - should we enact fiscal policy by lowering taxes or increasing spending? There are many points of view on either side of the spectrum. How do tax cuts affect GDP? Do tax cuts..
“Attempts to stimulate an economy with expansionary monetary policy will lead only to a loss of some of the country’s international reserves and to no permanent change in income under a fixed-rate system.” Agree? Disagree? Explain.
All of the following are examples of stock variables except one.
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