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Say that investment increases by 20 for each interest rate drop of one percent. Say also that the expenditures multiplier is 3. If the money multiplier is 4, and each 5 unit change in the money supply changes the interest rate by 1 percent, what open market policy would you recommend to increase income by 240?
The government imposes a fixed fee per year on each firm operating in a competitive market.
Price ceiling sets a maximum not illegal value that a seller may charge, typically placed below equilibrium. What do you think of a government placing a price ceiling next time gasoline prices rise above $4.00 a gallon?
Discuss how each of the following developments would affect the supply of the money, the demand for money, and the interest rate. For each case, describe what happens in closed economy and in small open economy. Describe your answers with diagrams.
The US is proposing a significant rise in duty on Canadian softlumber. USE APPROPRIATE DIAGRAMS to answer the questions about the Canadian economy.
For the same loan described under Q3, the individual decides that instead of selling the house after the 71st payment, to keep it and shorten the pay off period by increasing the montly payment by $150 each month. What is the number of months re..
What is the difference between book value accounting and market value accounting? How do interest rate changes affect the value of bank assets and liabilities under the two methods? What is marking to market?
The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers Answer risk-bearing theory of profit dynamic equi..
Given that an individual has paid the initial minimum charge, do you expect her to consume less than the amount to which the minimum charge entitles her? To answer this question properly, you need to superimpose some indifference curves on the sam..
What are some of the positive externalities of education? Why may higher education offer fewer positive externalities than primary or secondary education?
True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences). You can also use diagrams if they are helpful. Each correct answer is worth.
the aggregate supply also demand or how this relates. If you could help with this section I could probably write a decent paper.
The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy.
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