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1. What are the three tools the Federal Reserve uses to change the money supply and interest rates in the economy? Which of these tools is most important and why?
2. In each of the following cases, explain whether the statements are true or false, and why:a. If the real money demand is greater than the real money supply, interest rates must rise to reach the equilibrium in the money market as people sell bonds to obtain more money (cash).b. The federal governmentâ??s control of money supply, which influences the interest rates, is the primary tool that policy makers use to impact the macro economy.c. A decrease in the reserve requirement decreases the money supply because banks have fewer reserves.d. The real money demand curve shows how households and businesses change theirspending in response to changes in interest rate.
Assume that the Fed perceives inflation on the horizon and decides to pursue a contractionary monetary policy.
Explain is low stable inflation also deflation better for the economy.
Elucidate a firm competes in the market. Does the firm engage in price or non-price competition
Answer whether the following statements are true or false, explaining your answer in each case.
Manchester Foundry produced 45,000 tons of steel in March at a expenses of $1,150,000. In April, foundry produced 35,000 tons at a cost of $950,000.
Compute the linear function equation if drink consumption is a linear function of the number of students.
Elucidate why the general level of wages in high in the United States and other industrially advanced countries.
Suppose that American households change their tastes such that they want to save more at every level of income.
Illustrate what would you expect to see happen to the cost of a checking account if banks could not make loans. What would happen to the amount of investment made by businesses.
Is the subsiquent events cause the dollar to appreciate or depreciate against the Euro.
Marketing research shows that the price elasticity demand coefficient for the widgets
Compute total revenue, marginal revenue, total cost and profit at each quantity. What quantity would a profit-maximizing publisher choose? What price would it charge?
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