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Q. Q1. Explain how a tight monetary policy could affect the amount of funds borrowed at financial institutions by deficit units such as ABC Company. Explain how might it affect the credit risk of these deficit units? Explain how might it affect the performance of financial institutions that provide credit to such deficit units as ABC Company?
Q2. Describe the differences between the substitution effect of a wage increase and the income effect of a wage increase
Q3. What are the risks and potential problems using the monetary policy?
According to the rule of most favorable input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the corporation.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
The terms of trade if the united states trades 1 can of soda for 5 units of clothing.
What must she/he expect to happen to short term interest rates over the coming year.
As before pleasing the job, you admit a surprise offer from a competitor. Elucidate how much producer surplus have you earned, if you actually earn $2600 during the month.
Do you think the net effects of trade blocs are good or bad for world trade? Why? How do the efforts of the WTO relate to these trade blocs.
If the foreign country enters the market first, determine the equilibrium price and quantity. Will both countries produce. Show both average cost curves and the equilibrium.
Clarify what action monetary policymakers must take for the actions of fiscal policymakers to have no effect on real income.
Explain how the circular flow diagram relates to the current economic situation.
Explain the concept behind the governments TARP program and the ensuing stimulus packages that were implemented.
Using your understanding of the financial system, the demand for money, banking and the money provide, interest and spending, the stock market, interest and investment.
Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.
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