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The Fed seeks to promote stability of financial markets because
A) they want to lift the self esteem of workers.
B) Congress directed them to do so by the Employment Act of 1946.
C) resources are lost when there is not an efficient matching of savers and borrowers.
D) unstable markets result in increased efficiency.
It would not pay a firm to product anything in the short run if price were
Suppose you are a consultant for a firm that is perfectly competitive. The firm is worried only about its policies in the short run. What would you recommend in terms of quantity changes (raise, cut, shut down or stay put) and price changes (raise, c..
Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to:
Transit buses on a local San Francisco run carry 1000 passengers a day who are each charged 50 cents. The marketing department feels that by raising the price to 75 cents, ridership will decline by 200 persons (to 800 passengers a day). Suppose these..
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The bureaucratic form of government is so prevalent in public agencies and tends to result in a slower paced, less consumer oriented management
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Suppose there are 3 risk-neutral bidders that are interested in purchasing a Pablo Picasso painting at an auction. The bidders have valuations for the painting of $8 million, $10 million, and $15 million. The bidders do not know each other's valuatio..
You may be aware that there are three types of profit: accounting profit, economic profit, and normal profit. The difference between the total revenue and the sum of the explicit and implicit costs of an organization results in economic profit. It is..
If overseas producers can sell in the domestic market Illustrate what is the equilibrium price. Illustrate what is the equilibrium quantity.
Sally Rand owns a ceiling fan company. She sells 1,000 ceiling fans at $50 each. Each fan costs her $20. She uses her own money to buy the fans; she withdraws the money from her savings account where it earns 5 percent interest. Before going into the..
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