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(a) How does nominal GDP targeting differ from real GDP targeting? Why is real GDP targeting the riskier of the two strategies?
(b) Currently, no major central bank closely targets the money supply. Why do you think this is the case? Still, no major central bank completely ignores money growth? Why?(a) How does nominal GDP targeting differ from real GDP targeting? Why is real GDP targeting the riskier of the two strategies?
The radio manufacturing industry has been in decline for quite some time. Suppose the government is called on to save this industry with infusions of cash, low interest loans, or other special breaks. This might be touted as helping firms remain open..
Illustrate what is the equilibrium cost of a car stereo also illustrate what is the equilibrium quantity of car stereos per day.
what is the marginal utility of X? If a consumer moves downward along an indifference curve, what happens to the marginal utilities of X and Y? What happens to the MRS?
q1. why does the saying no taxation without representation make sense for public goods but not for private goods?
Global studios are thinking of producing a mega film, Aqua world, which could be a mega hit or a mega flop.
Suppose that an irish sweepstakes winner deposits $10 million in cash into her transactions account at the bank of America. Assume a reserve requirement of 20 percent and no excess reserves in the banking system prior to this deposit. Show the change..
What would always happen in a competitive market if supply shifts out (or shifts right) and demand shifts in (or shifts left/down)? Why do firms earn zero profits in the long run in markets with monopolistic competition? Consider a perfectly competit..
You have $12,500 to invest and you are considering investing in Fund X. The fund charges a fron-end load of 3% and an annual expense fee of 2.25% of the ending asset value over the year. You believe the funds gross rate of return will be 8% per year...
Find out equilibrium cost and quantity. Illustrate on your graph how a rise in cost of automobiles would affect gasoline market.
Why was the xerox corporation chosen to be in the top 100? what has been the company's history as rewards outsourcing as a source of revenue? and how does the firm describe, or imply its value proposition?
Suppose there are two inputs in the production function, labor (L) and capital (K), which can be combined to produce Y units of output according to the following production function: Y = 30K + 10L The firm wants to produce 600 units of output.
According to studies undertaken by the Department of Agriculture, the price elasticity of demand for cigarettes is approximately -0.3 and the income elasticity is approximately 0.5. What effect would a 10% increase in the price of cigarettes due to i..
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