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The XYZ National bank has reserves of $20,000 and demand deposits of $100,000. The reserve requirement is 10%. Assume households deposit $5000 in currency into the bank adding to its reserves. What are the bank's actual and required reserves? What action can the bank take and why would it do this? Over time what could be expected to happen to the money supply? Explain.
As compared to high Japanese inflation may result in an increase in the supply of yen for sale
Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources. Is it accurate to say that this is contributing to increased consumer surplus and reductions in inflationary pressures.
Illustrate what are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.
Let A[1..n] be an array such that the first n-n√ elementsare already sorted (though we know nothing about the remainingelements).Give an algorithm that sorts A in substantially better thannlogn steps.
Assume the marginal propensity to consume (MPC) was only 0.5. How much of that $900 billion went to increased consumption? Where did the rest of the money go?
The government spends $3 billion to buy police cars. Explain why aggregate demand might increase by more than $3 billion. Explain why aggregate demand might increase by less than $3 billion.
What is the prediction for the change in weight of someone who grows 1.5 inches? What is the predicted difference in weight between 2 people who differ by 6 inches in height? (c). Suppose that the sample average of H is 56 inches. What is the sampl..
Develop an exponential smoothing forecast with smoothing constants α =0.1 and 0.3. What would be the forecast for week 11?
1. Suppose chocolate bars and marshmellows are compliments for each other. If the price of marshmellows decreases, then the new competitive equilibrium for chocolate bars occurs where a) the original supply curve intercepts a new demand curve
the following show data on investment rates and output per worker for two pairs of countries. for each country pair
The demand for flash drives is qd=100-p+ln(m),where p is the price of a drive and m is income. a. Find the elasticity of demand for flash drives when p=2 and m=500. Now find the elasticity of demand for flash drives when p=3 and m=500.
The technology helps to grow productivity, which in turn frees up resources - permit interest rates to remain lower than otherwise possible. But i am not sure how increased productivity drives economic growth.
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