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If the Bank of Canada shifts to a more restrictive monetary policy, it will generally sell bonds in the open market. How will this action influence each of the following? Briefly explain each of your answers. a) The reserves available to banks. b) Real interest rates. c) Household spending on consumer durables. d) the exchange rate value of the dollar e) Net exports f) Real GDP
barbers who have turned farmers will drive down wage rate but will still be earning more than if y had remained barbers. Who benefits from technological progress in farming Farmers or barbers.
Why might economists prefer private ownership of monopolies over public ownership of monopolies?
q1. suppose a consumer is at an optimum consuming 6 hamburgers a week at a price of 1.50 each and 10 donuts a week at
In 1992, thirst Bush administration was worried about a lingering recession. The administration announced that households would receive a reduction in their taxes for the year 1992. However, this was not accompanied by a reduction in tax rates, and t..
Forecasters predictions of inflation are notoriously inaccurate, so their expectations of inflation cannot be rational.
q.1. an investor buys a property for 1 million with 40 of the purchase price attributable to the land and the balance
How markets allocate resources. Derived demand is the change in demand due to a result initiated in another market. Market changes affect the demand for resources in related markets. For the following scenario, you are given a list of products. Draw ..
Mr. Sansome withdrew &1000 from a savings account and invested it in common stock. At the end of 5 years, he sold the stock for $1207. In the savings account, he would have received an interest rate of 3%, compounded quarterly. He would like to compu..
The production function is f(x)=4x1/2 if the price of the commodity produced is $60 per unit and the cost of the input is $20 per unit, how much profit will the firm make if it maximizes profit?
What must the CFO have expected about the value of the British pound in $ today to believe that investment in British CD's was more profitable than investment in US CD's last July?
Which of the following is/are characteristics a monopolistic competitive market? Which of the following is/are not characteristics of oligopoly market? Which of the following is/are possible outcome(s) of Cartels?
q. 1. why indifference curves are downward sloping?2. why indifference curves are flatter whenever moving to the
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