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A market system (market economy) depends on the market to
a. find the most efficient way of using resources.
b. determine how large the budget deficit should be.
c. decide how much government regulation there should be.
d. provide minimum incomes for everyone.
Starting from short run equilibrium in the money market, assume Bank of Canada sells bonds using OMO. Explain very clearly using well labeled graphs, the short run effects on the money supply, the interest rate and real GDP.
Which of the following is unlikely to cause a reduction in lending?
Suppose that in the hypothetical country of Sore, coffee mugs are distributed based on government policy. This distribution rule gives the residents of Caffistan an incentive to spend time. People in the U.S. state of Iowa eat both corn and potatoes...
Bubba is a shrimp fisherman who can catch 4,000 pounds of shrimp per year. Bubba is considering hiring his cousin Bobby to work for him. Bobby can catch 3,000 pounds of shrimp per year. If Bubba hires Bobby, what will be the total output of his shrim..
The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used to explain short-run fluctuations in economic activity around its long-run trend. Which of the following are reasons that the short-run aggregate supp..
In the year of the shock, compute the value of GDP, price level, interest rates, and real money supply. Hint: Derive IS and LM equations to find GDP and interest rates. Calculate the new long-run equilibrium values for income, prices, interest rates,..
q.assume that the poorest country in the world is democratic republic of the congo and the richest country in the world
When a university bookstore prices chemistry textbook at $200 each, it generally sells 120 books per month. If it lowers the price to $160, sales increase to 160 books per month. Given this information, we know that the price elasticity of demand for..
What is a characteristic line? How is this line used to estimate a stock's beta coefficient? Write out and explain the formula that relates total risk, market risk, and diversifiable risk.
Evaluate the following statement 'in all of the regressions, the coefficient on Female is negative, large, and statistically significant. This provides strong statistical evidence of gender discrimination in the US labor market.'
What are the advantages and disadvantages of sourcing from China as opposed to India? What types of products or services are best suited for sourcing from India versus China? Why?
Opportunity cost is defined:
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