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Third National Bank is fully loaned up with reserves of $30,000 and demand deposits equal to $100,000. The reserve ratio is 5%. Households deposit $20,000 in currency into the bank. How much excess reserves does the bank now have, and what is the maximum amount of new money that can be created in the banking system as a result of this deposit? Show all work.
Discuss a situation in which both parties entering into a contract could benefit from slightly ambiguous language contained in the agreement.
Explain why might the private market not reach the socially optimal level of traffic without the help of government.
Finds in a simple regression analysis which demand increases with an increase in advertising also falls as advertising expenditures are reduced.
Write down the budget constraints when young also when old also the lifetime budget constraint for both types of consumers.
Assume that you live in a simple economy in which only three goods are produced and traded.
which cumulative expenditures are increased. Raising taxes also government expenditure by the same amount such which cumulative provide is decreased also cumulative demand is increased.
Coke could have followed the price per unit down, but it didn't. Total soft drink demand increased, and Pepsi took a larger share of the demand.
what would volume of output would the two alternative yield the same profit 3-if expected annual demand is 12000 units which alternative would tield the higher profit.
Now suppose that management believes the probability of weak demand in 2009 is 25% and the probability of strong demand is 75%. Using mean-variance analysis, explain which level of output should be chosen.
Assume a $6 excise tax is imposed on the good. Conclude the new equilibrium cost also quantity.
General Cereals is using a regression model to estimate the demand as well as for Twee tie Sweeties, a whistle-shaped, sugar coated breakfast cereal for children.
compute the average cost function for skateboards. what shape does the graph of this function have. What is the average at this level of output.
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