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A group of 8 patients was given a test medication that was touted as a breakthrough for high cholesterol. The cholesterol levels of the 8 participants were measured at the beginning of the study (before the medication was administered) and again 6 months into the medication regimen. The following cholesterol levels were recorded: Patient 1 2 3 4 5 6 7 8 Before 205 220 198 240 238 225 220 215 After 202 205 190 222 228 218 218 200 From this data, at the 1% significance level, can you conclude that the cholesterol medication was effective at lowering cholesterol levels? Why would we choose a 1% significance level rather than a 5% (or some other) significance level?
A consumer deposits of $1,000 in currency into her checking account. The bank sets aside $200 aside as required reserves (i.e. assume a 20% minimum reserve requirement), and then makes a loan of $800 to a new borrower.
Suppose that in the 1990's, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration.
Use the money market and FX diagrams to answer the following questions about the relation- ship between the euro and US dollar. We would consider how a change in the U.S. money supply affects interest rates and exchange rates. Suppose that US tempora..
Why does the flexibility of wages and prices tend to favor the Keynesian economic view in the short run but favor the classical economic view in the long run?
The production function at Jerry’s Copy Shop is q = 1000 x min(L, 3K), where q is the number of copies per hour, L is the number of workers, and K is the number of copy machines. Draw the average product of labor (APL) curve for this production funct..
Suppose a country has a money demand function (M/P)^d = kY, where k is a constant parameter. The money supply grows by 12% per year, and real income grows by 4% per year. What is the average inflation rate? How would inflation be different if real in..
Why is a market economy susceptible to coordination failures that can lead to unemployment and inflation? What do you think can be done to rectify these failures?
If a contractor decides to deviate from this agreement, what would the optimal deviation be?b. Suppose that M = 10 and C = 1. For which values of "delta" is this a subgame perfect equilibrium of the infinitely repeated game?
It also sold real estate for a profit (income, not capital gain) of $40,000. Determine the federal taxes owed by Red Ranger.
Suppose households hold $0.30 in currency for every $1 they have as demand deposits (checking accounts). Also, banks hold 20% of their deposits as reserves. Instead of Bonds being sold, suppose that households chose to hold less in currency and more ..
Changes in the quantity of money lead to real changes in the economy. If this is the case, why would the central bank ever stop increasing the money supply?
Q = 12S1/2P-2. Q is number of newspapers sold and S is number of inches of news printed. The cost of reporting S units is $10S. The cost of printing one copy of the newspaper is $0.08, so the total cost of Q = $10S + .08Q. Using fact that MR = P(1+1/..
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