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By definition, we can write the money supply M1 as M1 = M1/Base ∗ Base/Res ∗ Res/PGold ∗ QGold ∗ (PGold ∗ QGold).
where Base is the monetary base and Res the amount of reserves. Calculate the variance of the log of each component over time. Then report the ratio of the variance of each component relative to the variance of the log of M1. Which of these components are more volatile relative to M1? What do these results suggest about the importance of the gold standard in determining short-run fluctuations in the money supply? Note: The necessary data are only available for Belgium, France, Poland, Sweden, UK, and US.
microeconomic problem1. suppose a business finds that output varies according to the following schedule as it adds more
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What is the Tragedy of the Commons and what is the solution? De Anza College.
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After few years, cost of production of Panadol increased due to increase in price of paracetamol (one of the main ingredient used in the production of Panadol). Due to this increase people started using Disprine instead of Panadol.
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