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Which of the following is not one of the explicit functions of the Federal Reserve granted by Congress?
A. Regulating financial institutions.
B. Serving as a lender of last resort to financial institutions.
C. Issuing coin and currency.
D. Balancing the federal budget
First suppose that there is no tax in the country Randland. A resident, Dagny, has an hourly wage of $50. How is it possible for Dagny to increase her hours worked after a tax? Graph the labor supply decision for Dagny on a daily income-leisure graph..
As a result of the United States suspending gold sales to foreign countries in 1968,
It’s that season again! You have engaged in a market study to categorize your patients’ willingness to pay for their flu shot into 8 equal sized groups: $40, $35, $30, $25, $20, $15, $10, $5). All of your costs are fixed except labor and materials, w..
In all of our previous discussions about compensation levels, we never discussed the possibility that employees were paid too much. What is different about paying CEO’s that makes overpayment a possibility? Consider the two models of CEO pay: skimmin..
If there is initially a federal budget surplus, and government purchases and transfer payments both fall:
A firm has the exogenous cost function C(Q) = 354Q-30Q^2 + Q^3. Compute the marginal cost function. Compute the average cost function. For the remaining parts, assume that the demand for the firm’s product is D(P) = 25- √P. Calculate the inverse dema..
Do economists still believe in the menu view of the Phillips Curve? What view has replaced the original view? Given the new view of the Phillips Curve, why do economists believe that a "credible" inflation reducing policy is less costly than an "incr..
An excise tax of $2.00 per pound of sugar placed on the suppliers of sugar would shift the supply curve:
Leaders and human resources professionals are searching for ways to generate more value from their employees. Finding new approaches for optimizing talent is a critical aspect of organizational performance. The Hackett Group, an operations improvemen..
Consider two industries, each comprising ten firms. In industry A, the largest firm has a market share of 49 percent. The next three firms have market shares of 7 percent each, and the remaining six firms have equal shares of 5 percent each. Compute ..
Illustrate what risks do you face. Upon inquiry at your bank, you find that the forward price for a September contract to buy dollars is 10SKr per dollar. How might you hedge your exchange-rate risk for the first year.
long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial economics) were interviewed regarding the effect on the firm they both work at. Keeping all else constant their answer..
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