Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose that the Federal Reserve strictly follows a rule of keeping the interest rate at 3% per year. Initially, this interest rate equates the demand and supply of real money balances. The economy then experiences a negative shock to the demand for money. In other words, there is a drop in the demand for real balances that people want to hold at a given interest rate and real income.
(a) If the Fed didn't change the money supply, what would happen to the interest rate?
(b) If the Fed wanted to keep the interest rate constant following this money demand shock, how would it change the money supply?
(c) Suppose that over time the economy experiences many positive and negative demand shocks.
Further, suppose that the Fed follows a policy of always keeping the interest rate constant. Would the Fed's constant interest rate rule increase the variance of the money supply? Is this a bad thing under the circumstances?
If the reserve requirement is 20%, c=0.5 and e=0.001, what happens to the money supply as a result?
Illustrate what is the own price elasticity for ATM fees charged to non-customers.
In your opinion, do you feel education is important in getting a better job and earning more money. Why or why not? Do you believe there are opportunity costs to furthering your education? If so, what are they? If not, why?
Assume at present, firms in perfectly competitive market are receivings negative economic profits (losses). Describe the process by which this industry will reach long-run equilibrium.
In the model of a dominant firm, assume that the fringe supply curve is given by Q = -1 +0.2P, where P is market price and Q is output. Demand is given by Q = 11-P. What will price and output be if there is no dominant firm Now assume that there is..
Import Quotas also voluntary export agreements are often used instead of tariffs. What are the differences.
Consider that this product is to receive no promotion other than what the retailer will give it, and the product will be offered at a competitive price. Assume the new diaper's name will not be associated
Kate Austen must generate a sales predice to convince the loan officer at a local bank of the viability of Marina Del Rey, a trendy west coast restaurant.
Illustrate what are the major differences among an open and closed economy
Consider two firms competing in prices and selling a homogeneous product. The market demand curve is p = 100 - q and the constant marginal costs of the two firms are 10 and 20 respectively. Also, suppose all prices should be integer numbers.
Assume two firms, A and B, serve a market with demand D(p) = 100 - p. Assume that (i) they have identical cost functions, c(Q) = 5Q,
Graphically illustrate short-run supply. Also include on your graph the long-run aggregate supply curve. At what point must the short-run aggregate supply curve and the long-run aggregate supply curve intersect.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd