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When the price of a burger fall from $3 to $1 and other things remain the same,
1. The quantity of burgers demand increases from 200 to 400 an hour,
2. The quantity of fries demand increases from 224 to 375 packets an hour
The cross elasticity of demand for fries with respect to burgers is -0.5
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In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
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Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
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