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1. How does an increase in the currency-deposit ratio affect the money multiplier? What is the effect of an increase in the reserve-deposit ratio? Explain the direction of changes in both cases in terms of bank balance sheets and the ability of banks to respond to these changes.
2. “In order to keep national income stable, the Fed has to purchase government securities whenever interest rates rise.” Comment on this statement with the help of an IS-LM diagram. Consider two separate cases of interest rate increases and compare Fed policies in each.
Why does Vellus export through local distributors rather than set up its own sales force in country? What are the risks associated with using local distributors? How can these risks be reduced?
a company has sales of $30 million. A million dollar advertising campaign increases sales $10 million to $40 million, but a two million-dollar campaign raises them $15 million to $45 million. Which of the following can U.S authorities NOT do to con..
suppose that two people michelle and james each live alone in an isolated region. they each have the same resources
If a small country wants to protect its domestic producers from more efficient foreign competition by imposing an import tariff, will it come out ahead?
1. which of following is necessarily true regarding total utility tu and marginal utility mu?a diminishing mu implies
The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:
What is the equilibrium wage?
Farmers have a relatively inelastic demand for their crops. Suppose there is a bumper crop year (an unusually large harvest).
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Outline a microeconomic reform issue that is relevant to the Australian economy and how successful do you think these reform measures were and say why referring to some data or research that has been performed?
A firm in a perfectly competitive market invents a method of production that lowers marginal costs. What happens to output What happens to the price it charges A. The firm has an employee who threatens to tell all other firms in the industry about..
charging 17.99 a month for an unlimited number of movie rentals three at one time. netflix revolutionized the movie
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