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3. Suppose that the required reserve ratio is 0.12 for deposits and there are no excess reserves. Suppose also
that the total demand for currency is equal to 0.3 times deposits.
a. If total reserves are $40 billion, what is the level of the money supply?
b. By how much does the money supply change if the Fed increases the required reserve ratio to 0.20? Assume that
total reserves are unchanged at $40 billion.
According to an article entitled "Concepts of Price elasticities of Transport Demand and Recent Empirical Estimates," Journal of Transport Economics, the estimates of the price elasticity of demand for selected modes of transportation is as fol..
suppose that investors become more optimistic about the housing market and purchases of new homes increase. using the
given the current economic situation determione the steps the federal reserve should take to help stabilize our
How much cyclical unemployment does the economy have to experience to have inflation rate of 2% and What is the sacrifice ratio?
In the context of fiscal policy and with reference to the multiplier, describe why a given dollar amount of direct government expenditures (G) yields more fiscal stimulus than an equivalent amount of tax cuts.
Consider a family that ranks combinations of household production time (N) and purchased goods and services (Y) according to the formula: U= NY. Suppose the maximum time available in a day is 16 hours, the wage rate is $4 per hour and the fa..
consider the following version of the model of incentive pay with endogenous monitoringin a principal-agent
1. a perfectly competitive industry has demand curve p 100 - .5q where q is total output produced. all firms in
What price will maximize profits - Explain the conditions necessary for a firm to practice 3rd degree price discrimination and using airline conditions as examples.
lightweight personal locator beacons are now available to hikers that make it easier for the forest services rescue
The total operating revenues of public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1, and the price elasticity of demand for public transportation has been estimated to be..
how does your analysis of value of marginal product vmp change if the employer is a monopolist producer of its output
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