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Terry takes $100 from his checking account and deposits the $100 in his savings account. What is the immediate change in M1 and M2?
If your business exports its products OR if imports factors of production...whether recent trends in exchange rates are likely to be good or bad for costs and/or revenues.
In 2013, the furniture store PB produced 13 mahogany desks. One of them is sold to Jeanine for $3,349, later that same year Jeanine sold the desk to Pamela for $1,919. The remaining desks were not sold to anyone that year and stay in PB's inventory a..
Marge is employed and maintains a household for herself and her daughter. Monica is 22 years and a full-time student. Monica is expected to graduate from Law school in May 2015. Over the past two years, Monica has earned $9,000 a year from her part-t..
if relatively more drug users are addicts rather than casual users, prohibition will be more effective. Is this statement true or false? Explain. the interest income that could have been earned on money invested in a college education is not relevant..
Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map. Suppose the price of apples is $2 per pound, the price of oranges is $3 per pound, and Bob's budget is ..
If your average pre-retirement earnings were $30,000 per year, your highest preretirement earnings achieved was $90,000 per year and you receive $20,000 per year in retirement benefits, what is the replacement rate?
On a typical day the Fed conducts defensive open market operations (defensive OMO) in order to keep the federal funds rate constant. With the aid of a graph of the federal funds market and a verbal explanation, show how the Fed does this, namely how ..
If the federal reserve uses open market operations to offset a recession the fed------------- government securities in order to ------------the federal funds rate.
Between 2007 and 2011 the federal budget deficit grew from $160.7 billion to $1,299.6 billion, and the national debt grew from $8.9 trillion to $14.8 trillion. In your post, differentiate the budget deficit from the national debt. How do you think th..
Bob's lawn-mowing sevice is a profit-maximizing competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say about Bob's short-run decision regarding shutdown a..
Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly. What characteristics of the industry make it a monopoly? What is the impact of the monopoly power on its customers?
Suppose the Federal Reserve pursues expansionary monetary policy at the same time a reduction in taxes occurs (i.e., a fiscal expansion). Explain what effects this combination of monetary and fiscal policy will have on the macroeconomy.
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