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Suppose that in an effort to stimulate the economy, the Federal Reserve decided to engage in an open market operation to expand the M2 money supply by 10%. What are some potential drawbacks of such a move?
Instead of engaging in open market operations, suppose the Fed simply printed an extra $500 billion and disbursed it equally among the population. Why is this a problem?
Briefly explain the impacts of increasing the reserve requirement ratio on banks.
Why are decisions by the FOMC regarding changes in the overnight lending rate so closely followed by the financial markets?
A market in which there is an additional transaction that would benefit a buyer, a seller, and any third parties affected by the transaction is called. In the case of spill over benefits or costs,
Two variable inputs, labor (L) and materials (M), are used to produce output. Company's current level of output: CL = $10 / unit, MPL = 25 CM = $2 / unit, MPM = 4 (!) Decide whether the firm is operating efficiently, given that its objective is to mi..
Explain what the short is--run effect of a fiscal contraction (lower government spending for example? What happens to the nominal wage rate during the process of moving from short-run equilibrium to long run equilibrium? What about real wage rate
Explain the major risks involved in subcontractor contracts. Then, determine which of the risks involved holds the most risk to the subcontractor. Support your response with evidence or examples.
The major promotional strategies include which of the following? A. The producer using advertising, personal selling, and sales promotion to convince wholesalers and retailers to stock and sell merchandise
An indifference map implies
under governments coverage of mri tests find the per-unit subsidy it provides? determine total subsidy that government
What happens to the indifference curves when a household's income is reduced and how does a budget constraint explain consumer choices when used in conjunction with indifference curves?
you are asked to identify a real world industry that conforms to either the oligopolistic product model or the
Critics of the minimum wage discuss that as an antipoverty device it is "poorly targeted." By this they mean that:
What was Morita drawing and what did he know about costing that the chain store representative was overlooking? Be sure to describe or chart the shape of Morita's costing sketch in your answer.
Assume that in the perfectly competitive industry the equilibrium industry quantity is 10,000 units. Assume that the monopoly output is 5,000. For a 2-firm Cournot Oligopoly (N =2) known as a duopoly, what is the likely Cournot QUANTITY for the in..
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