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Why did the Fed innovate new direct lending programs and vastly increase the amount of direct lending it provides to financial institutions in the winter of 2008, instead of continuing to rely on almost entirely on open market operations to affect credit conditions in the economy?
Discuss an industry that would meet the conditions of a perfectly competitive industry and how the individual firms would respond to an increase in the market demand for the product.
If the U.S. international merchandise account balance is positive, then:
Lauren Moore has sold her business for $720,000 also wants to invest in condominium units (
Measuring the intensity of the business cycle requires. According to monetary theories of the business cycle, fluctuations are. As the economy approaches the peak phase of the cycle, profits will tend to
Suppose that the level of capital in the economy is 200 units, the depreciation rate is 10%, and the level of investment is equal to 10 units. In this case:
In which of the following areas is the principle of non discrimination being central to GATT evident? Normal trade relations, national treatment, elimination of quotas and quantitative restrictions all of the above
Does it matter if a central bank (Fed in US) is independent of the government? Why do you think that matters? What would happen (or likely to happen) if Fed was not independent of the US government? Can you think of any country that their central ban..
Following WWII, a rift emerged between the capitalist nations of the West and the communist nations of the East after World War II. In an attempt to orchestrate the economic and internal affairs of Eastern European communist nations, the Soviet Union..
Suppose a technological advance reduces the cost of making computers. Draw a supply and demand diagram to show what happens to price, quantity, consumer surplus (CS), and producer surplus (PS) in the market for computers.
Suppose in the first quarter of the year, Real GDP was $400 billion; in the second quarter it was $398 billion; in the third quarter it was $399 billion; and in the fourth quarter it was $395 billion. Has there been a recession? Briefly explain how e..
Apple feels it is a price leader in the mobile phone market with all the other producers acting as followers. The total demand for mobile phones is given as, If Apple wants to maximize profits, how many mobile phone units should they produce? How muc..
Suppose the demand for paper is given by Qd = 360 – 4p and the industry marginal cost of production is given by Qs = 6p. In addition, the firm’s production imposes an externality with an associated marginal damage (MD) = 2. Please include a graph wit..
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