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Suppose that a fall in house prices decreases wealth substantially.
a. How will this change affect output in the short run?
b. Suppose the Federal Reserve wants to prevent the impact you found in part (a). Should it increase the real interest rate, decrease it, or leave it unchanged (or is it not possible to tell)?
c. How, if at all, should the Federal Reserve change the supply of money in order to bring about this change in the real interest rate?
When your income goes up to $50,000 from $40,000, demand for Scotch Whiskey increases from 500 to 600. Calculate income elasticity of demand.
Consider the market for coffee beans. Suppose that the prices of all other caffeinated beverages go up 30 percent while at the same time a new fertilizer boosts production at coffee plantations dramatically. Can you tell what will happen to the equil..
Board of directors has directed you to choose an output level that maximizes the firm's profit. You have an incentive to maximize profits because your job and salary depend on the profit performance of this company.
Demonstrate a critical understanding of the standardization vs adaptation debate in International Marketing. Make reference to positives and negatives from organisational and consumer perspectives.
Jay Boville Corporation is being sued by Lark Dent. Lark Dent can settle out of court and win $40,000 or go to court. If Lark goes to court, there is a 30% chance that she will win the case. If she wins, a small and a large settlement are equally lik..
If you are willing to pay $1400 for a used stereo that is a “cherry” and $280 for a used stereo that is a “lemon,” how much will you be willing to offer to purchase a stereo if there is a 50 percent chance that the stereo is a lemon? If owners of che..
Need to make a python program that open the file to write with the name is number_list.txt and uses loop to write the number from 1 to 100 in the file and close
There are many who propose that the west should ‘forgive’ the debt of under-developed nations, including some celebrities, some politicians, and even some economists. Find at least one article that makes the argument that these debts should be forgiv..
what is the marginal utility of X? If a consumer moves downward along an indifference curve, what happens to the marginal utilities of X and Y? What happens to the MRS?
Two important concepts that our chapter on Foreign policy discusses are the values that drive foreign policy and the specific instruments that are utilized to carry out foreign policy. In the post-9/11 and Afghanistan/Iraq Conflicts era, do you think..
John Wilson, the owner of a fast-food restaurant, estimated that he can sell 1,000 additional hamburgers per day by renting more automated equipment at a cost of $100 per day. Alternatively, he estimated that he could sell an extra 1,200 hamburgers p..
Consider the following utility function (referred as a quasi-linear utility function as it is linear in the second element): Briefly describe where the failure of the tangency condition stems from and what does it mean. Hint: Setup the tangency condi..
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