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The Fed wants to increase the money supply (which is currently 4,000) by 200. The money multiplier is 3. For each 1 percentage point the discount rate falls, banks borrow an additional 20. Explain how the Fed can achieve its goals using the following tools: (LO30-3)
a. Change the reserve requirement.
b. Change the discount rate.
c. Use open market operations.
He claimed that he was not bound by the regulations because he never knew that they had been adopted. Is he bound by the regulaions?
A farmer owns a plot of ground also sells the right to pump crude oil from his land to a crude oil producer.
q1. explain why each of the following statements is true false or uncertain according to economic principles.suppose
What can we say about the price elasticity of demand for nicotine products (such as cigarettes, pipes, tobacco) in the group of nicotine addicted users, versus the group of "social smokers"? Can we say whose demand is likely to be more elastic? Why?
Explain how will the market restrain economic freedom. Explain how will society produce goods and services at lowest cost.
The university bookstores received 4 million euros from students in exchange for the books. Illustrate what is the total contribution to GDP from the above events.
For the industry you have chosen, discuss how price moves from today to the future.
how many standard errors it is away from zero. If it is not very far from zero n we might ignore it; if it is far away from zero n we might consider it important. But how far is ‘far'.
What could be done to motivate people to spend more so as to increase aggregate demand and invariably, create employment possibilities.
Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.
And within a few months, they reduced the amount of scrap to $7,000 worth [per year]." Was this necessarily an economically efficient move? Explain your answer.
From what you know about these firms' cost structure, what is the highest possible price per unit that could be existing as the market price in the long run equilibrium.
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