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Suppose that the demand for federal funds curve is such that the quantity of funds demanded changes by $120 billion for each 1 percent change in the federal funds interest rate. Also, assume that the current federal funds rate is at the 3 percent rate that is targeted by the Fed. Now suppose that the Fed retargets the rate to 2.5 percent.
a. Assuming no change in demand, will the Fed need to increase or decrease the supply of federal funds? Decrease or Increase?
b. By how much will the quantity of federal funds have to change for the equilibrium to occur at the new target rate? Decrease or Increase by $..... billion?
Define and explain the difference between normal goods and inferior goods. Provide two real world examples of each good from your own personal or professional life.
Suppose you were manager of restaurant and you were told honestly that a couple eating dinner has just seen a mouse, what would you say to them, how would you recover from this service crisis.
q.assume that the economy can be described by the following 3 equationsut-ut-1-0.4gyt-5 okuns lawpit-pit-1-ut-4
You are being given data on supply also demand for the whole marketplace also are being asked illustrate what effect that has on you as a small part of that marketplace.
Economic history since the industrial revolution [in the United States] strongly suggests that technical learning, not the process of perfect competition, drives growth over time” explain why perfect competition is not conducive to innovation, i.e., ..
Median length of stay was 1.1 days shorter when a hospitalist cared for a Medicare patient. Median cost per case was $853 less (excluding physician fees). There were no significant differences in mortality, 30-day readmissions, or transfers.
How has globalization influenced recent U.S. foreign policy? Do you think the American response to globalization has had a positive or negative effect on foreign relations?
Consider a large country importing good X in the international market. The country is large enough to influence the international price for good X. Let the initial international price of good X be $100, where the country imports 100 units and produce..
Solve the firm's short-run cost-minimization when capital is fixed at a quantity of 5 units (i.e. K ? = 5). Derive the equation for the firm's short-run total cost curve as a function of quantity Q and graph it together with the long-run total co..
Let's say that companies that produce and sell silk shirts hire analysts to analyze the economy and make guesses about the future
Assume that the marginal cost of providing lockers is zero as well as the monthly demand as well as for lockers is estimated to be best described.
What is the largest constant consumption stream you can afford?
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