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What effect would a million-dollar bank robbery have on the nation's money supply? Be thorough; think about not just the components of the money supply, but also the role that banks play in the monetary system
In your own words, outline several aspects of the system of checks and balances. What are some responsibilities that are unique to each branch, and where do responsibilities overlap? What was the intention behind this setup?
Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month. Explain your reasoning.
Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 92 - 2PX. Suppose the government imposes a price floor of $40, and agrees to purchase any and all units consumers do not buy at the floor price of $40 per unit. Determine..
Perfect Competition - Draw supply and demand graphs and show how the following situations would shift supply or demand. Does Price (P) and Quantity demanded (Q) rise or fall? The Affordable Care Act increases the number of individuals with health ins..
Suppose there is a reduction in the saving rate. Explain what effect this will have on output, output per worker, the rate of growth of output, and the rate of growth of output per worker and consumption per worker
Trace the evolution of work on the laissez-faire doctrine through two arcs. First those theorists who are trying to prove that the system is stable.
The reason that the local telephone company is able to engage in price discrimination between business and residential customers in providing local phone service is that
Economists often assume that insurers set premiums (nearly) equal to the AFP for that plan. Is that an accurate assumption? Is a higher “load” on insurance premiums necessarily a bad thing for consumers? When might a higher load be a sign of problems..
If a country's currency's external value is tied or pegged to the currency values of the country's leading trading partners, this arrangement
Define the concept of marginal revenue product (MRP), or value of the marginal product as defined on p. 377 of the textbook; then relate that to the marginal cost of the labor input factor. Explain why a competitive, profit-maximizing firm hires work..
Which of the following arguments strengthen the idea of floating exchange rates? A. Trade deficits can be corrected through changes in exchange rates. B. Changes in exchange rates will not impact the trade balance in the country. C. Governments shoul..
Bankruptcy: Moral Amoral or Immoral? Is it unethical to avoid paying one’s debts by going into bankruptcy? Does a person have a moral responsibility to pay his or her debts? Why? Explain your answer
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