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Suppose that an expansionary monetary policy occurs at a particular point in time, and consider they same economy two years later, when it has returned to its long run equilibrium, (so expectations are fully adjusted). How does the interest rate in the interest rate in the new long run equilibrium compare with the interest rate just prior to the original expansionary monetary policy?
The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution? Explain with a creative and unique example.
Brazil is the world's largest coffee producer. There was a severe drought in Brazil in 2013-2014 that damaged Brazil's coffee crop. The price of coffee beans doubled during the first three months of 2014. Draw and discuss a supply and demand diagram ..
The FOC and local SOC for the firm's optimization problem can be used to prove the law of supply, meaning exactly: if the firm supplies a positive quantity at the current market price, then at a higher price it will supply a larger quantity.
Use your own words to write about apple (fruit) consumption in the United States. Please do not use Google unless you paraphrase and list resources. Describe as much as you can.
they both can earn 10$ an hour they both have non-labor income of 300$ per week and they have 110 hours per week of non sleeping time. Who would works the most hours also how much do each of them make per week
NY state will soon implement a $15/hour minimum wage for fast food workers. What is your prediction of the short run effects of this policy? What is your prediction of the long run effects?
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 35,000 bottles of wine were sold every week at a price of $7 per bottle. After the tax, 30,000 bottles of wine are sold every week; consumers pay $9 per bottle, ..
The demand curve for cookies is down word sloping, when the price of cookies is $2, the quantity demanded is 100. If the price rises to $3, what happens to consumer surplus?
All licensed drivers are required by law to purchase a minimum level of auto and motorcycle insurance (well, if they own either of the two). However, the vast majority choose to buy much more insurance than the required minimum. It’s also true t hat ..
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond..
While purchasing _____ an individual whose cost of time is low will visit a larger number of dealers compared to the individual whose cost of time is high.
Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.20 million. This investment will consist of $3.00 million for land and $9.20 million for trucks ..
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