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1. Imagine you are the chairman of the Federal Reserve. Assume your objective at present is twofold; to stabilize inflation and economic activity. Given your objective, describe your response to each of the following scenarios in math, pictures, and words. Report your response in the context of the model(s) we’ve developed in class. Consider each event separate from the others:
i. . a rapid rise in the stock markets rapidly increases people’s wealth;
ii. Chilean citizens get a sudden taste for Buffalo hot wings (Assume Buffalo wings must be made in Buffalo, New York);
iii. firms begin to grow anxious about the decline in consumer confidence.
2. Describe in detail the process of an open market operation that is intended to increase the money supply, Mt . Show the impact of the open market operation in the context of the money market framework.
Calculate the maintained mark up percentage for a department under the following conditions:
Elucidate how much did Chinese purchases of financial also real assets abroad exceed foreign purchases of Chinese financial also real assests.
The impact of a budget deficit is: State and local governments issue ____ bonds that offer tax advantages, so they typically have _____ interest rates than bonds issued by the federal government and corporations.
10 consumers, ranked by their value for a network product v = 1...10, are deciding whether to connect to the network. If there are n people on the network, including oneself, then a consumer's willingness to pay equals n x v. What is the highest pric..
Determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs.
An individual’s demand for physician office visits per year is Q = 10 (1/20)P, where P is the price of an office visit. The marginal cost of producing an office visit is $120. (a) Individuals pay full price for obtaining medical services, how many of..
Marx argues that economic changes are the source of class conflict and potential social change. Explain Marx’s argument by either using the historical example of the transition from feudal production to capitalist production, or explain this by perha..
Which of the following contribute to income inequality?
Are innovative product and service offerings ethically neutral? Consider Napster and the intellectual property issues associated with swapping music over the Internet as an example to begin the discussion.
At a university faculty meeting in 2012, a proposal was made to increase the housing benefits for new faculty to keep pace with the high cost of housing. What will likely be the long-run effect of this proposal?
Find out and read two articles about a recent controversial issue involving either the Federal or state government and eminent domain.
Explain why the total profit (from all sales) is still likely to lower with this pricing scheme than with perfect price descrimination despite fixed fee equal to the entire consumer surplus of a typical customer.
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