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Think of an example of the principal-agent that you experienced first-hand or read or heard about. What factors led to the problem? Were there serious adverse outcomes arising from the problem? Based on the course material, what suggestions can you offer that would have reduced or eliminated the problem?
Suppose that First National Bank, Second National Bank, and Third National Bank have zero excess reserves. The required reserve ratio is 20%. The Federal Reserve buys a government bond worth $1.5 million from John, a client of First National Bank. Fi..
Mark Carney, Governor of the Bank of England.Now that the referendum has passed the Governor has made additional public statements that hint at Bank of England monetary policy. What did he say? (proper quotes and dates) How do his statements translat..
In your words, compare and contrast a positive and a negative externality. Be sure to provide an example for each. How does a positive or negative externality
The once mighty General Motors, unable to survive by meeting the needs of customers turned to the taxpayers for a bailout in the U.S. In Europe its Opel subsidiary required similar life support from the German government. What are the costs and benef..
Suppose Spain produces only cars and digital cameras. The resources that are used in the production of these two goods are specialized—that is, some resources are more suitable for producing cars than digital cameras, whereas others are more suitable..
He plans to marry at about the end of year 6 and will skip the investment contribution that year. How far below or above his $300,000 goal will he be?
q.smith and jones are stranded on a desert island. each has in his possession some slices of ham h and cheese c. smith
Why does the SRAS slope upward to the right. What exogenous force determines the overall position of this upward sloping curve on the graph? Show how this decision would affect the SRAS, price level and income level on your graph from the short run i..
Suppose that a concert hall faces the following demand curve for its evening shows: QE =40−.8P and the following demand for its afternoon shows: QA =24−.8P where Q is the number of tickets in thousands and P is the price of a ticket in dollars. What ..
You buy a new pair of shoes on sale. The printed receipt states very clearly that the shoes are not returnable. After you get them home, you wear the shoes around the house for a day and decide that they just don’t fit you correctly.
Illustrate what is her economic profit or economic loss. What happens to demand for labor. What are the new equilibrium wage rate and employment level.
If we say a good is “perfectly inelastic”, then:
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