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1. How does the increase in the monetary base change the quantities of M1 and M2? Why?
2. How did the change in monetary base influence short-term and long-term nominal interest rates? Why?
The National Debt Try the following exercises to better understand how the national debt is related to the government's budget deficit Assume that the gross national debt is initially equal to $3 trillion and the federal government then runs a defic..
Find the future value one year from now of a $7,000 investment at a 3% annual compound interest rate.if the investment is made for 2 yeaars also calculate the future value.
What is expansionary monetary policy? Why does expansionary monetary policy have an expansionary effect on the economy (that is, why does it cause aggregate demand to increase)? Please explain.
Explain in your own words what happened with these companies which caused an international financial crisis. Identify at least one management goal for Fannie Mae and Freddie Mac.
"The expansionary policies implemented in Australia in 2008/9 by the Rudd Government and the Reserve Bank of Australia were unnecessary and will result in a period of unwanted inflation".
In 1981, when regulations were holding the price of natural gas below its free-market level, then-Congressman Jack Kemp of New York said the following in an interview with the New York Times: ?
The Subway fare in your town has just been increased from a current level of .50 cents to a 1.00 per ride. As a result, the transit authority notes a decline in ridership of 30%. a. Compute the price elasticity of demand for subway rides.
Suppose the marginal expense of hiring another worker is $150 and the marginal expense of hiring current workers for an extra hour is $10.
What is an installment sale? If a transaction qualifies for installment sale treatment, when will the taxpayer be taxed on the sale? What does a taxpayer do if the taxpayer does not want to use the installment method?
How do these 4 concepts help to explain the law of demand (not explaining what they are but how the are related to law of demand):
Make a brief history of the FEDERAL RESERVE system and explain the organizational structure of this agency as well as the role the Fed has in drafting and implementing United State Monetary policy.
assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision
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