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Name two types of market failure. Explain why each may cause market outcomes to be inefficient. Please include references. Thank you!
Assume that fiat money and capital are perfect substitutes as assets and that individ- uals wish to hold the one with a higher rate of return, but that it takes time to adjust capital holdings. What is the equilibrium level of capital when the money ..
The developing country uses the $100 bank balance to import $100 worth of food from the United States (US).
What is the local EAC of each alternative? What is the overall EAC for each? Is the preferred alternative different for local and national interests?
Assume that the following data characterize the hypothetical economy of Trance: money supply = $190 billion; quantity of money demanded for transactions = $160 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, incr..
What is the firm's cost of capital: (a) Before taxes? (b) After taxes with a tax rate of 34%?
MPC = 0.75. Calculate the spending multiplier and the tax multiplier. Spending multiplier = 2.5. Calculate the MPC and the tax multiplier. Tax multiplier = 4.0. Calculate the MPC and the spending multiplier
In a recent article, a researcher reported that he had found the demand curve for kerosene to be upward sloping.-as the price of kerosene rose the quantity demanded of kerosene increased. Illustrate what questions might you have for this researche..
It is a common belief that social security benefits will run out in the near future. How can we save social security?
Can a monopolistically competitive firm producing a good with lots of very close substitutes earn large positive profits in the long run? Please explain.
Which of the following would shift out (or shift down or shift right) the supply curve for fluorescent light bulbs?
Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonalds, etc.). What motivated the producers of all the individual products in the store to make them and offer them for sale? How did the prod..
Spartan Town Bank is the only bank in town when it comes to borrowing or depositing. You may also assume it’s the only bank in the economy. Initially, it holds $4000 worth of checking (or demand) deposits, $1000 of reserves, and $3000 of loans. Const..
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