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Suppose the federal reserve's trading deal buys $500,000 in T-bills from a securities dealer who then deposits the fed's check in best national bank. Use a balance sheet to show the impact on the bank's loans. Consider the money multiplier and assume that the requires reserve ratio is 10 percent. What is the maximum increase in the money supply that can result from this open market system?
Elucidate Classical economists believed in the self-correcting nature of the economic system. They believed that the major adjustment.
Suppose the price of widgets falls from $7 to $5 and consumption of widgets rises from 15 widgets a month to 25 widgets.calculate the price elasticity of demand of widgets.
Make an analysis of the United State Fiscal Policy by addressing the following, differentiate the state of the economy. Determine the focus of the current fiscal policy?
Assume that demand for labor by firms is given through L=1000-100W and the supply of labor from workers is given by L=-400+100W, where L represents the number of workers and W is the wage in this labor market.
How would each of the following affect the firm's marginal, average, and average variable cost curves?
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Find out the equilibrium market price. Find out the profits of the leader and the follower
Some possible platforms on which to write are comparative advantage, gains from trade, World Trade Organization and trade restrictions.
Using the IS/LM/BP model, demonstrate the effect of each of the following changes. Assume that the economy is a small country with perfect capital mobility and a flexible exchange rate.
You want to invest in a hot dog stand near the ballpark. You have 0.35 proability that you can turn your currnt $15,000 into $50,000 and a 0.65 probability that fierce completion will drive you to ruin losing all your money. If you decide not to e..
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulate..
Elucidate the economic cost function for this business. What is the economic break even number of units for this operation.
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