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The federal funds rate is the most widely noted aspect of monetary policy, but it is not counted as one of the Fed’s policy tools. Explain why it makes sense not to count the federal funds rate as one of the Fed’s policy tools.
Use the classical theory of distribution to predict the impact on the real wage and the real rental price of capital of each of the following events. A technological advancement improve the production function
A free-market republican argues against the Pigouvian tax by pointing out that the conditions necessary for the Coase Theorem to produce an efficient equilibrium are present in this situation. Assuming that the republican is correct, describe two met..
What must happen to induce foreign residents to buy the bonds? If foreign residents desire to purchase the bonds, what is the most important source of dollars to buy them?
Define the opportunity cost of getting your degree by analyzing what steps and economic factors a potential student must make when choosing to pursue an education. Given your answer, is getting a formal college education worth your opportunity costs?..
The article touches on two crucial conditions for a fiscal stimulus to work.
What geographic area would the market area typically considered be? How would quantity demanded and the price of this product be measured?
Suppose that initially the money supply is 2 trillion the price level equals 2 the real gdp is 4 trillion in base year dollars and income velocity of money is 4 . Then suppose that the quantity of money in circulation remain fixed but the income velo..
International trade has pros and cons. Economists generally supports free trade. International trade has played a significant part in promoting economic development and technology transfer among countries. There are also various arguments in favour o..
You compete with many firms offering similar products (monopolistic competition). An economic consulting firm has estimated the own-price elasticity for your most profitable product is -1.50. Your marginal cost is constant at $75 across most of your ..
The market demand for another product you are considering selling is Q(p) = 100 ? (1)p and as the 2. Only producer of this product your production costs would be C(Q) = 40Q. What is the actual Lerner Index?
Discuss the current monopoly to provide a brief overview of the company. How did the monopoly arise? Did the monopoly increase barriers to entry?
Throughout the 1970s and 1980s, genetic engineering increased crop yields in the United States. "General Motors said Monday that it will close 14 plants, including seven in Michigan, as part of its restructuring in bankruptcy."
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