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"In order to keep national income stable, the central bank has to purchase government securities whenever interest rates increase." Comment on this statement with the help of an IS-LM diagram and explain the adjustment process. Consider both a shift in the IS curve and a shift in the LM curve. Note: let the LM curve shift because of an increase in money demand.
Consider the following Demand equation that represents Demand for goods to your company produces q=100-2p. Total cost of production is cq. Given to your company's objective is to maximize profit
Consider Blanche, who expects to live for two periods: “now” (period 0) and the “future” (period 1). She earns an income of $40,000 dollars now, but zero in the future since she will be retired. Her problem is to decide how much to consume in period ..
Suppose you are appointed head of the energy department of the city or town where you grow up, and you are asked to come out with a sustainable long-term strategy that that will carry your city into the middle of the century. What are the three bigge..
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another? Use examples to illustrate.
Harper Engine Company needs $600,000 to take a cash discount of 1.5/10, net 60. Abanker will loan the money for 50 daya at an interest cost of $12,100. What is the effective rate on the bank loan? How much would it cost (in perecentage terms) if Harp..
Kentucky Fried chiecken's success in Asia dramatizes the case for becoming a global firm. While KFC's market share in the United States has fallen because of American's interest in reducing their consumption of fried foods, KFC has become the fast-fo..
the hhi for automobiles is 2350 for sporting goods is 161 for batteries is 2883 and for jewelry is 81. which of these
Survey data has been gathered from 500 hikers who visited a forst in a neighboring state. Using regression analysis, economists have controlled for differences in income, employment status, age and other important factors that might affect the number..
Explain how the government can stimulate the aggregate supply. What are the implications of using this stimulus to help stabilize an economy?
Karen's money income is $180, the price of X is $3, and the price of Y is $1.5. Given these prices and income, Karen buys 40 units of X and 40 units of Y. Call this combination of X and Y bundle C. At bundle C, Karen's Marginal Rate of Substitution b..
q1.the item to rice or paintings. which product did you expect to have a higher index of intra-industry trade and
In regards to the cotton example. Work to fully comprehend it and each of the steps followed. Ie. Fully understand how the equations were developed, how they came to allocate signs and how they reached their hypotheses. 2. Summarize the process and n..
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