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To increase tax revenue, the U.S. government in 1932 imposed a 2-cent tax on checks written on bank account deposits. (In today's dollars, this tax would amount to about 34 cents per check.)
a. How do you think the check tax affected the currency-deposit ratio? Explain.
b. Use the model of the money supply under fractional-reserve banking to discuss how this tax affected the money supply.
c. Many economists believe that a falling money supply was in part responsible for the severity of the Great Depression of the 1930s. From this perspective, was the check tax a good policy to implement in the middle of the Great Depression?
Assume that a borrower and a lender agree on the nominal interest rate to be paid on a loan.
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Around the world, demand for electric vehicles (EV) is growing according to the Centre for Solar Energy and Hydrogen Research. There have been more than 320,000 new EV registrations in 2014, bringing the total global market up to 740,000 vehicles.
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Suppose that the price of gasoline rises, and at the same time, the price of steel(an input to automiblile production) falls. Show this on your graph. If you have no other information, what can you say about the change in equilbrum price and quani..
(a) What is the mean and standard deviation of the amount she spends on breakfast daily? (b) What is the mean and standard deviation of the amount she spends on breakfast weekly?
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Provide a clear discussion of at least one economic issue raised in the article in your own words. Why is this story/topic/issue significant for macroeconomists?
A coal mining company has a supply curve of W=48 + (72/2000)L and Demand of P= 60- (9/4000)Q. coal miners produce 8 tons of coal a day. they max profit.
California Electric has a cost of equity capital of 16%. The company has consistently been authorized a return on equity capital below this expenses.
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