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The banking system currently has $100 billion of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 40%. If the Fed reduces the reserve requirement to 20% and at the same time sells $10 billion of bonds, what happens to the money supply?
Suppose demand for a good is QD = 50 - P and supply is QS = -10 + P. How much is the producer surplus? How much is consumer surplus?
You find that the car requires repairs of 1,200 dollars in order to get it to run. Once it is repaired, it will definitely not break down again. Assuming that the car is worth 3,500 dollars after repairs, should you get it fixed.
The EZ Credit Company offers to loan a college student $6,200 for school expenses. Repayment of the loan will be in monthly instalments of $382.95 for 18 months. The total repayment of money is $6,893.10, which includes the original $6,200, $1,234.72..
One component of the Patriot Act of 2006 was the "Combat Methamphetamine Epidemic Act", which prohibited the over the-counter sale of cold medicines that contain pseudoephedrine (which is commonly used to make meth). Ceteris paribus, what is a likely..
terrorist attacks on the World Trade Center and the Pentagon affected short and/or long-term productivity in the United States. Explain your response and show any movements in the PPF.
Which of the following is NOT an outcome of a decline in the business cycle?
The consumption function is C = $400 billion + 0.6Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with:
A regulator plans to impose a specific tax on a previously unregulated monopolist. Before imposing the tax, they want to know what the change in quantity produced will be from such a tax. The proposed specific tax is τ = 10 and the following are the ..
q.based on the production function parameter estimates reporteda. which industry or industries appears to exhibit
q.firms often face the problem of allocating an input in fixed provide among different products. find out the optimal
Explain how does the trade deficit affect U.S. economy. Explain how does it affect the firm or organization you work for.
problem set one1-price-elasticity of
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