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What is the importance of the principal-agent relationship?
If a bank decides to hold less equity capital, then, other things held constant,
Write equations for APL and MPL and graph them on the same set of axes. b. At what level of L is MPL at its maximum level? At what level of L is APL at its maximum level?
Illustrate what happens to interest rates when the riskiness of bonds rises using the supply and demand for bonds framework. On another graph, illustrate what happens to interest rates when the riskiness of bonds rises using the liquidity preference ..
Create a table showing total production for the two countries with no trade. Create a table that assumes total specialization. What is the effect on total production? What are the two extreme (relative) prices that are possible for trade in this situ..
A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10,the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. The producer
Consider Claudia Goldin's findings in Chapter 3 of The Gender Gap. Explain the changes between 1900 and 1970 in the occupational distributions of men and women for the major categories examined by Goldin. Also describe the changes in the wage ra..
When quantity moves proportionately to the same amount as price, demand is:
Suppose, as part of an active monetary policy, the Federal Reserve sells government and other securities from its existing portfolio holdings to the banking and financial sectors and the non-bank public. Suppose also that the banking sector is fully ..
What are the two types of information available to complete the budget? Describe the benefits and disadvantages of them and give an example of each.
Researchers have come to conclusion that corruption is one of the major factors that affect the economic development in many developing countries. In other words, these countries are not developed because of corruption. What is your reaction to this ..
How are the executive, legislative and judical branches of government involved in the budgetary process?
Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 6 units of good X and 1 units of good Y. Consumer B is given an initial endowment of 2 units of good X and 7 units of good Y. Suppose the pr..
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