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Money Supply vs Interest Rate Targets
(Money Supply Versus Interest Rate Targets)
Assume that the economy's real GDP is growing.
What will happen to money demand over time?
If the Fed leaves the money supply unchanged, what will happen to the interest rate over time?
If the Fed changes the money supply to match the change in money demand, what will happen to the interest rate over time?
What would be the effect of the policy described in part (c) on the economy's stability over the business cycle?
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Illustrtae what is the value of x which will make the manager indifferent among shirking and working hard.
To maximize total income should the price be increased or decreased
Compute the changes in inflation rates, unemployment rates and the RGDP growth rates.
Explain how does the increase in the after-tax price depend on the price elasticity of demand
A new hybrid car manufacturer is trying to decide among making and buying its parts and components. it has complied the following data per vehicle produced:
The advent of the one man bus involved more capital equipment: an automatically operated coin box and door control device - to name two of the capital goods that replaced the conductor."
A child of a wealthy family is deciding either to work or not work also mooch off her parents. Asume that she is offered a job which pays.
As with this data how could you make the cost benefit test to tell if at a given percentage level abatement is effiecient.
Most of the critics argue that America has too many elections, a surplus of elected officials, and unwieldy layers of government.
Utilizing the economists model of individual choice comparing the marginal costs and marginal benefits of a choice.
Explain how does the reserve ratio set by the Federal Reserve affect the ability of banks to make loans. Name the tools of the federal Reserve Bank. Which is most important?
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