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Use the diagram of the IS/LM model to illustrate the effect of a: a) decrease in the money supply b) increase in government spending c) increase in autonomous money demand (for example, the financial panic example in book) d) decrease in autonomous consumption 2. Take your example from (c) above. What type of macroeconomic policy (fiscal or monetary) could offset the impact of an increase in money demand? Illustrate with a graph. 3. Take your example from (d) above. What type of macroeconomic policy (fiscal or monetary) could offset the impact of decrease in autonomous consumption? Illustrate with a graph. 4. Draw another graph of the IS/LM model. Put a point to the right of the LM curve and above the IS curve. At this point, describe the nature of disequilibrium in the a) money market, b) goods market.
what is meant by fractional reserve banking and what are its implications on the money supply. if the reserve
If the government were to make university attendance mandatory and subsidize tuition costs with tax dollars, how might this affect a nation's economic growth?
suppose your company has decided to use a divisional wacc approach to analyze projects. the firm currently has 2
a poncho company has the following short-run production functionq l 100l 5l2the cost of capital in the short-run is
1. If interest rates or opportunity costs investment, happened to be the same in both developed countries and emerging economy nations, what could account for faster upward shifts in the latter group's planned investment functions 2.Are stocks of ..
Suppose the price of housing stays at 2 and the price of food stays at 10. What will happen to her budget constraint if her income increase to 100? What happens to her budget constraint when her income decreases to $20.
what is the concentration ratio for the industry x and y. (number of firm) ----(industry x) ------ (industry y) (1) -----------------------8,750-------- --------1,750 (2) -----------------------7,500---------------- 1,725
1 examine the history of immigration to the united states from the cape verde islands. how did the immigration to the
When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sella. any positive output the entrepreneur decides upon because all of it can be sold. b. nothing at all; the firm shuts down c. the ou..
A policymaker is deciding how to finance the construction of a new airport. He can either pay for it by increasing citizens' taxes or by printing out more money. What are some short run and long run consequences of each option
instructions- late submissions will not be accepted. you are welcome to submit early.- maximum words per question 650-
Explain why the European Central Bank cannot selectively change interest rates in any of the 16 EU countries that have adopted the euro—for example, lowering the interest rate to stimulate the economies of Greece, Ireland, or Spain, while maintaining..
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