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How does the withdrawal of currency from checking accounts affect the money stock? How does it affect a bank’s reserves? How does this affect the bank’s ability to make loans? What effect might this withdrawal consequently have on the money stock?
Suppose a monopolist produces according to the following demand curve: P = 200 - 4 Q. Assume that the firm faces a constant marginal cost and constant average total cost of $56 per unit produced. What quantity should this firm produce? What price sho..
Where do you think the rest of the monetary base is (from money supply), and under what conditions might it return to the banking system?
Using the PPF analysis, explain what this means, the consequences of this behavior with regards to economic growth, and what the government could do to rectify the problem.
The following data has been provided by your manufacturing department to estimate the standard cost of producing a particular product. What is your estimate of the cost to produce each unit? If you company wishes to make a 20% of the manufacturing co..
A political platform based on monetarism would advocate: With regard to unemployment, may monetarists believe: According to “The Power of the Market” what factor “enables people to cooperate peaceful in one phase of their life while each goes about h..
According to the neoclassical theory of distribution, a worker’s real wage reflects her productivity. Let’s use this insight to examine the incomes of two groups of workers: farmers and barbers. Over the past century, the productivity of farmers Af h..
Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average ..
If you deposit RM3,000 with each bank, illustrate what will be the difference in the two bank account balances after two years.
Let market demand in the trinkets industry be given by Q(P) = 55−P. There are only two firms in the industry, and the total cost function for each firm be given by C(qi) = 10 + 25q, where i = 1, 2. Write down the profit maximization problem of each f..
The Economist magazine uses the price of a Big Mac to determine whether a currency is under-valued or overvalues. In July 2012, the price of a Big Mac was $4.33 in New York, 15.65 yuan in Beijing, and 6.50 Swiss francs in Geneva. Was the yuan underva..
You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C = 20 + 5Q. The profit-maximizing price is
q1. suppose that businesses buy a total of 100 billion of the four resources labor land capital and entrepreneurial
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