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Suppose that Apple Pay becomes extremely common and easy to use, so that people need to hold even less money in order to carry out transactions. Depict the effect this will have on Liquidity Preference market for money in the short-run. If the Federal Reserve wants the interest rate to remain unchanged, what kind of open market operations should they carry out? Depict the effect of this open market operation on Liquidity Preference market for money in the short-run. And then, depict the effect the introduction of Apple Pay will have on Liquidity Preference market for money in the long-run without considering the Fed's open market operation.
What are the external effects ( externalities ) and why they can lead to inefficiencies and government intervention in the markets. Why are some government policies to manage external effects effective ( efficient ) while others are inefficient ( ine..
In our study of intertemporal utility maximization, everything (initial and ending wealth, interest rate, and consumption) in the budget constraint is expressed in real terms. Reformulate the budget constraint in nominal terms and show that for a two..
The state of California has a pollution permit market for carbon emissions, where all large firms must have a permit for each ton of carbon emissions they generate. The California state government sets the supply of permits and large electricity prod..
Assume that an employer believes that the “efficiency” (e) it can get from a particular worker, as a function of the hourly wage (w), is given by function e = –0.125w + 0.15w2 – 0.005w3, at least up to a wage of 30. a. Create a table of w, e, e/w, an..
Over the last year your boss has noticed that it would be useful for your firm to understand how consumers behave when variables in the market change and how these changes affect the total revenue for your product. You have been asked to do an analys..
With showing your work in details, determine the requested information for acontrol chart for count of non-conformities.Trial center line. Trial upper control limit.
he previous manager used a transactional leadership approach, which has been relatively ineffective. Evaluate one leadership style and describe which you would take. An experienced executive assistant discovered that she made the same amount of money..
What is the tax climate in Kansas? What did the governor do in 2012 and 2013? What are the arguments to support this kind of policy strategy? How has the state’s tax policies affected Kansas as not only a good place to own a business, but also as a g..
Most business in the U.S. is conducted by corporations, and corporations popularity results primarily from their favorable tax treatment.
Which of the following statements is false in the short run? The long-run average-total-cost curve shows.
Explain why product differentiation leads to differences between monopolistic competition and perfect competition.
Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a good. The price of a substitute good increases and the price of an input to production also increases. Graph the original demand and supply curves,..
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