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If the required reserve ratio is 10% and $1,000 of new bank reserves are created by the Federal Reserve, what is the maximum potential increase in the quantity of money in the economic system (not just the money created by the banking system but the total money supply)? Why might the money supply not increase by the maximum possible amount? Make sure you show your calculations and answer both parts of this question. Use the following equation to answer this question: Maximum Potential Increase in the Money Supply = (1/r) x Monetary base (i.e. sum of currency in circulation and bank's reserve balances), where r is the required reserve ratio.
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Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses
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Read The Iliad as if you are an archaeologist who has just discovered an ancient text which gives you a window into the ancient world. You hold this fragile treasure in your hands, and begin to read, knowing that you must suspend your modern perspect..
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Handy Manufacturing Industry Trade Association recently published the following estimates of Demand and Supply relations for hammers. Calculate the perfectly competitive industry equilibrium price/output combination.
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