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An economy begins in long-run equilibrium, and then a change in government regulations allows banks to start paying interest on checking accounts. Recall that the money stock is the sum of currency and demand deposits, including checking accounts, so this regulatory change makes holding money more attractive. a) how does this change affect the demand for money? b) what happens to the velocity of money? c) if the central bank keeps the money supply constant, what will happen to output and prices in the short run and in the long run? d) if the goal of the central bank is to stabilize the price level, should the central bank keep the money supply constant in response to this regulatory change? If not, what should it do? Why? e) if the goal of the central bank is to stabilize output, how would you answer to part (d) change?
Zachary must make a financial presentation to a bank in order to try to get a loan for his new business. He wants to show the firm's projected sales growth and increase in market share for the first five years. He will most likely use a(n) softwar..
Discuss and explain the major barriers to entry into a industry. Describe how each barrier can foster monopoly or oligopoly.
When the two countries didn't specialize the total production of jeans were 23 million pairs and a total production of rye was 68 million bushels . because of specialization the total production of jeans has increased by ______(3,6,9,12 million)..
Using the "Monopoly" model found in the Chapter 10 "Origin of Idea" module, explain why a monopoly will never operate in the inelastic portion of the demand curve? What are the underlying purposes of the antitrust policy in the United States? Thes..
Describe what is meant by the Gold Standard and what were the problems with the gold standard?
Sketch a production possibilities curve (not a straight line), with consumer goods on the horizontal axis and capital goods on the vertical axis.
Suppose you are to specify a short-run total variable cost function for a nursing home. Explain the variables you would include in the function.
The current economic downturn has been called a housing disaster, a financial disaster and a debt crisis, but the simplifying logic of the political season has settled on what is really more a result than a cause.
Many factors determine the supply and demand for labor. Identify and explain two factors that would increase or decrease the demand for labor. Identify and explain two factors that would increase or decrease the supply of labor.
(library research) Explain (a) in what way the US trucking industry exemplified the capture theory hypothesis of government regulation prior to the passage of the Motor Carrier Act of 1980 and (b) the result of hte passage of the Motor Carrier Ac..
In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit is to lower price
Suppose an airline flying on the Charolette-Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day advance purchase), and discount (14 day advance purchase) travellers. ..
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