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Why has the Federal Reserve chosen to focus onthe federal funds rate rather than some other interest rate as a toolof monetary policy?
Assume that consumers are uniformly distributed along a one-mile stretch of beach. A number of ice cream vendors are pondering where to position their carts. If the price they are allowed to charge is fixed by the Equal Access to Coolness For All Coa..
Suppose the demand for crossing the Golden Gate Bridge is given by. What is the price elasticity of demand at this point? Could the bridge authorities increase their revenues by changing their price?
What are the government's fiscal policy options for ending a severe recession? What are the short term and long term consequences of using fiscal policy for ending a server recession? What are the Monetary policy tools the Federal Reserve Board uses...
Assumes the perfectly competitive firm is in long-run equilibrium also there is an rise in Demand
Suppose that there is no fixed production input (i.e. long run.) With the production function above, the slope of the isoquant is given by MRTS = -(K/2L). Assume the firm chooses to hold costs C at $50.
In evaluating projects, LeadTech’s engineers use a rate of 15%. One year ago a robotic-transfer machine was installed at a cost of $38,000. At the time, a 10-year life was estimated, but the machine has had a downtime rate of 28%, which is unacceptab..
An automobile factory sold $10,000,000 in automobiles to final consumers. Given these events, calculate the GDP of Autoland using a. the final goods approach. b. the value-added approach.
Suppose the price is currently $2. Illustrate what problem exists in the economy. What would you expect to happen to price.
Market equilibrium. How is equilibrium established? Define market efficiency and volatility?
This theory of consumer choice is a branch of microeconomics which relates to what is called to consumers demand curves and to expenditures of consumption.
Suppose that in the U.S., the income velocity of money (V) is constant. Suppose, in addition,that every year, real GDP (Y) grows by 3 percent and the supply of money (M) grows by 4 percent. a. According to the quantity theory of money, what will b..
Consider the housing market described by these equations: Find the equilibrium price and quantity. Calculate the consumer and producer surplus.
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