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Monetarists, claim that central banks have to keep the money supply growing at a steady rate. They believe that fluctuations in the money supply are responsible for most large fluctuations in the economy.They argue that slow and steady growthin the money supply would yield stable output, employment, and prices.On the other hand, some economists believethat monetarist policy rule would work only under a certain circumstance otherwise it would be useless. According to these economists what is necessary for the monetary policy rule to be effective?
What did you learn? Why is it important? How do the Economics concepts we just covered impact the economy, you and your family, your friends and your employer?
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table.
Discuss how ABC Company would deal with these factors to become more successful in its investment in a country
1. How does consumer and producer surplus describe efficient markets in terms of allocation of goods and services? 2. International trade and trade agreements seem to be a big issue for the upcoming presidential election this November. Are we bette..
If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.)
Since all economies are faced with scarcity, how might nations attempt to minimize the human hardship associated with scarcity Try to use concepts seen in this unit such as production possibilities frontier, comparative advantage, circular flow, e..
Now add an entry stage after firm 1 chooses q1. In this stage, firm 2 decides whether or not to enter. If it enters then it must sink cost K2, after which it is allowed to choose q2. Compute the threshold value of K2 above which firm 1 prefers to ..
1.A bank has $1 million in vault cash, $5 million in short term Treasury securities and $20 million in deposits at a Federal Reserve Bank.
What are the main reasons why countries trade? Are there winners and losers with free trade and export? What is the effect of trade on the unemployment rate in the United States? Please provide concrete example. Write your initial response in four..
In this scenario, you will evaluate the Code of Ethics to determine if John Anderson has violated International Widgets' Code of Ethics by engaging in business with a competitor.
Use these data to estimate the price elasticity of demand for subway rides.
If the rate of inflation is 2%, what are the before-tax real interest rate and your after-tax rate of return?
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