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To reduce unemployment, the Federal Reserve authoritis should
Sell gov. securities, raise reserve requirements and lower the discount rate, or
Sell gov. securities, lower reserve requirements and lower the discount rate, or
Buy gov. securities, raise reserve requirements and rasie the discount rate, or
Sell gov. securities, raise reserve requirements and raise the discount rate, or
Buy gov. securities, decrease reserve requirements and decrease the discount rate
Assume mortgage payments of $1100 per month for 30 years and an interest rate of 0.5% per month. What initial principal or PW will this repay? Assume annual mortgage payments of $13,200 for 30 years and an interest rate of 6% per year. What initial p..
Suppose the Canadian economy, on a fixed exchange rate, has a real growth rate of 2% and is in equilibrium with an inflation rate of 10% and a risk premium of 1%. Suppose changes in the U.S. cause its real rate of interest to increase from 3% to 4% a..
The hospital relies on grants and contributions from outside donors and the city depends on funds and grants from the federal government and taxes of the citizens and sales within the city. Why does the hospital not rely on money from patients?
An artist makes a beautiful instrument that becomes famous throughout the country. A number of claimants arise, each of whom argues that they deserve the flute: the artist who created it, the most talented musician, the poorest musician, the neediest..
Write down the budget constraint of the representative consumer and Write down the maximization problem of the representative consumer and find labor supply
Consider a small country that is an exporter of good X. Suppose the government imposes a tariff on imports of good X. Using one graph, showing demand and supply of good X in the home country, carefully illustrate the effect of a tariff imposed by the..
Which of the following is example of moral hazard?
What are the three most important attributes of successful organizations? Why? Is it more likely for an organization to display these attributes (to be successful) in an oligopoly than in monopolistic competition? Why or why not?
In fact, an insurance agent explains that he is always true. Nevertheless, the engineer buys fire insurance. Explain why this is or is not a logical decision.
A firm uses third-degree price discrimination to sell the same cologne under two different labels. The price elasticity of demand for `High Class' is -1.25. The price elasticity of demand for `Splash-This-Stuff-On' is -2. Which one of the following s..
Suppose you are a manager of a firm. You estimate equations for the firm as follow:Fixed Cost = 600,000, Marginal Cost = Average Variable Cost = 63, Marginal Revenue = 130 - 0.00025Q, Demand: P = 130 - 0.000125Q. Find the revenue maximizing level of ..
A case study in the chapter describes a phone conversation between the presidents of American Airlines and Braniff Airways. Let’s analyze the game between the two companies. Suppose that each company can charge either a high price for tickets or a lo..
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