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Suppose that the Fed permanently increases the growth rate of the money supply. According to the Friedman effect as discussed in class, what will happen to both nominal and real interest rates in the short-run? In the long-run? Explain why.
Calculate a marginal cost as well as an average cost schedule for the firm.
Owing to the rising cost of copper, in 1982 the U.S. Mint changed the composition of pennies from 95% copper (and 5% zinc) to 2.5% copper (and 97.5% zinc) to save money. If it cost the U.S. Mint $0,017 to produce a penny in 2012, is it time to elimin..
Which of the following rate measures the percentage change in price for a basket of goods and services consumed by a "typical" household --- the consumer price index?
q.some economists have suggested that the best way to control medical costs is to remove the profit incentive for
Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, what is the value of government securities the Fed must purchase if it wants to increase the money supply by $2 million?
Assume there is a market with only two profit maximizing companies (duopol) where each company has MC = AVC = 20 and no fixed costs. Also assume that market demand is Q = 100 - 0.5p. If both companies compete and chooses their given supply quantities..
Webster is a talented baker and has a degree in business management. He wants to own his own chain of incorporated bakeries one day. What obstacle does he face to starting a corporation right away?
Which of the following statements about discrimination on the basis of national origin is true?
If the cost of medical care increases by 40 percent, then, other things the same, the CPI is likely to increase by about
Illustrate what is the marginal cost of a string. Calculate marginal revenue and marginal cost for each quantity.
ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televise Monday Night Football. What is the net present value of this investment if the parent Disnery company has an opportunity interest rate equal to it..
The difference between a basic “cost-benefit analysis” and a “cost-effectiveness analysis”. In addition, tell me a potential scenario where a cost effectiveness analysis should be used instead of a cost benefit analysis.
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