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1. What is the basic objective of monetary policy? What are the major strengths of monetary policy? Why is monetary policy easier to conduct than fiscal policy in a highly divided national political environment?
2. Distinguish between the Federal funds rate and the prime interest rate. Why is one higher than the other? Why do changes in the two rates closely track one another?
Would this have been the result of a change in demand or a change in the quantity demanded? Would you recommend the flat fee or the fee per bag? Why?
Write a 200-word summary discussing the challenges, milestones and discoveries of your teams efforts this week. Feel free to discuss task assignment however your summary should be based on reflection of collaboration and not exclusively on projec..
Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with ( a ) A $50 billion increase in gov..
Suppose that worker skills can be measured in efficiency units, and that efficiency units are distributed in the population such that worker 1 has 1 efficiency unit, worker 2 has 2 efficiency units, etc.
government consumption in our model is simply a waste that is it does not affect anyones utility or affect the
Assume 2 firms are in the market, producing at constant marginal cost=0. Consumers incur transportation costs which are quadratic in the distance traveled; specifically, a consumer located at position x incurs transportation costs of 2
A large equipment rental company wants to estimate the mean number of days a piece of equipment is rented out. A random sample of 14 recent rentals shows a mean of 2.14 days and a standard deviation of 1.29 days.
What were the results of empirical tests on the prevalence of factor reversal in the real world?
What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. What is profit.
Consider the production of Good X. Good X is produced using only labor, which can be supplied by either humans or robots, with the production function given by X=f(H,R)=H + R. Humans and robots are perfect substitutes for each other.
In 1990 Mrs. John Hay Whitney sold her painting for $71 million. The buyer also had to pay the auction house commission of 10%, or a total of $78.1 million. The Whitney family had purchased the painting in 1929 for $165,000.
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