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Q. "In the early 1980s, new legislation allowed banks to pay interest on checking deposits, which they could not do previously.
a. if we define money to include checking deposits, what effect did this legislation have on money demand? Explain.
b. If the Federal Reserve had maintained a constant money supply in the face of this change, what would have happened to the interest rate? What would have happened to the aggregate demand and aggregate output?
c. If the Federal Reserve had maintained a constant market interest rate (the interest rate on nonmonetary assets) in the face of this change, what change in the money supply would have been necessary? What would have happened to the aggregate demand and aggregate output?"
Competition in the market is such that each of the firms independently produces a quantity of output.
Explain how businesses create value by integrating the production and distribution of goods, services, and information.
Estimate t-statistics for each variable and elucidate Illustrate what inferences can be drawn from m. If R2 of this equation is 0.25, illustrate what inference can be drawn from it.
The Federal Reserve Board is considerining changing its target inflation rate. However, they are concerned about the immediate effect on inflation. Find the sensitivity of equilibrium inflation to a change in the Fed's target inflation rate in the..
q.given the following annual information about a hypothetical country answer questions a through d.billions of
Merk is a biotech division of Bayer Pharmaceuticals. In its eight years of existence, Merk has had only one drug make it into clinical trials.
How much does consumption change this year in absolute dollars ($ ΔC) as a result of a $5,000 annual tax cut to your income, if the tax cut.
Consider the subsequent cost relationships for a single-product Is there a minimum efficient scale of plant implied by these cost relationships
Discuss these three time horizons in terms of the price elasticity of supply. Sketch a figure showing supply curves for each of the time horizons.
During 2006 a leading auto manufacturer produced 20 million of minivans. However due to soaring gas prices the sale of mini vans becomes sluggish and by the end of 2006 only 16 million of mini vans are sold. what is the gdp of mini vans is ?
An advertising campaign that makes people more aware of the benefits of chiropractic care
Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.
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