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(1) In many cases, particularly instances of hyperinflation, we do not observe a stable demand for real money balances that is proportional to real output (i.e, MD/p≠LxY). Explain how we alter the simple monetary model to derive the general monetary model.
(2) Some apparently puzzling linkages between money, interest rates, and exchange rates. For example, an increase in the money supply typically leads to a weaker currency but sometimes this is accompanied by higher interest rates and sometimes with lower interest rates. How can we explain this apparent contradiction?
In an auction, potential buyers compete for a good by submitting bids. Adam Galinsky, a social psychologist at Northwestern University, compared eBay auctions in which the same good was sold. He found that, on average, the larger the number of bidder..
For each of Marshall’s four rules of derived labor demand, come up with one example of an industry or job that you would expect to have especially elastic or inelastic labor demand based on that particular rule.
find an identical output for each firm that maximizes joint profits.
Given the rapid pace of technological change and financial innovation in financial markets nationally and internationally, would it be economically efficient to not deregulate banking? Explain.
for what interest rate will the maximum number of housing starts be achieved?
Compare the efficiency of monopolistic and perfectly competitive markets. Discuss the economic factors that lead to the development of monopolies. Examples of monopolies include electric utilities, railroads, airlines, cable television, and sports le..
Suppose the nominal tariff rate on rice crackers is 0.15 (15%), and the tariff on rice (the ingredient used to make rice crackers) is 0.1 (10%). The ratio of the value of rice to the value of rice cracker is 0.9. What is the effective protection rate..
How might it be possible for the unemployment rate to still increase? Provide an example, i.e., provide a scenario with numbers, to support your answer
Four separate cases involving similar fact situations were consolidated as they presented the same constitutional question. In each case, police officers, detectives, or prosecuting attorney's took a defendant into custody and interrogated him in a p..
Is the demand for this good price elastic or price inelastic? Justify your classification by talking about the determinants of elasticity as they apply to this product.
Consider the following Heckscher-Ohlin model: there are two countries, America and China, two goods, high-tech manufactures and low-tech manufactures, and two factors of production, skilled labor and unskilled labor. What happens to the wage of skill..
You have just inherited $100,000 from your rich uncle Sam. Being the conservative sort, you rush to your local bank and deposit the entire windfall. The reserve requirement is currently 10 percent. What is the immediate impact on the balance sheet of..
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