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Suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. Suppose further that people want to hold 8 percent of their deposits in the form of cash. Then, if the Fed wants the money supply to be $6,228 billion, what is the necessary level of high-powered money?
Consider the following statement: "government funded projects intended to serve as 'prestige projects,' such as the 'big dig' should not be judged on the basis of cost." do you agree or disagree with this statement? Why?
Discuss and explain perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings.
In a situation in which a gift certificate leads a consumer to purchase a greater quantity of an inferior good than he or she would consume if given a cash gift of equal value. Is this always the case
Illustrtae what is the value of x which will make the manager indifferent among shirking and working hard.
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms.
Assume a merger of company would simultaneously lessen competition and reduce unit costs through economies of scale.
The schedule below shows the level of output that can be produced using different levels of input. A unit of input costs $80 and the fixed costs of running your business are $50.
Suppose that the interest rates in the U.S. and Germany are equal to 5%, that the forward (one year) value of the € is F$/€ = 1$/€ and that the spot exchange rate is E$/€ = 0.75$/€. Please answer the following questions by explaining all steps of ..
Illustrate this strategic interaction using a game in normal form and has WallMart a strictly dominant strategy? Has it a strictly dominated strategy? Clearly explain.
a stock was priced at 150 per share at the end of 2007. the following table show dividends per share paid during each
"We have too many hotels in this town already. Statistics show that vacancy rates average 20 percent on any given night." Assuming this is correct, evaluate his negative assessment of the situation in terms of business-stealing and product-variet..
At what output and price will the firm maximize total revenue?
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