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Suppose the money supply is currently $400, all in the hands of individuals, and apples cost $1 apiece.
a) How many apples can those individuals buy with the money in their pockets? (This is an incredibly easy question.) Suppose the Federal Reserve prints $100 in new bills nd uses those bills to buy apples, which they give away to Janet Yellen’s mom.
b) What is the new price of an apple?
c) Suppose that the price of an apple adjusts as soon as the new dollars are printed (before the Fed gets to spend them). How many apples does Janet Yellen’s mom get?
d) Now, how many apples can everyone else buy?
e) Is there a deadweight loss? Explain why or why not.
As the baby boom generation begins to reach retirement age and the increase in the life expectancy in the US, people will be receiving Social Security payments for a longer period of time. In your opinion, what should the government do to handle this..
The overwhelming majority of federal cases are resolved in the _____.
Owner of a haulage business is planning to invest in a new eighteen wheeler that costs $180,000, use it for 5 years and then sell it off for $90,000 dollars. At 7% interest rate, how much net revenue the investment has to at least produce each year t..
Break-even analysis (LO2) Stock Electronics sells portable heaters for $25 per unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed costs are $96,000. Compute the break-even point in units
A producer would not remain in Stage 1 because APP
What are some of the major opportunities and threats that the US faces as the world becomes one global marketplace? How do we take advantage of them and how do we deal with the downsides?
Describe the key differences between simulation models and the models covered in previous modules; not only from the perspective of their applications, but also from the perspective of computing/solving the models had(Previous models included multipl..
Indirect finance is more important than direct finance in most countries in part because of information costs associated with lending. Explain why are financial intermediaries relatively more effective at reducing these costs
When marginal revenue is greater than price the firm's profit is always positive. When an increase in the quantity results in a reduction in profit marginal cost is greater than marginal revenue. Generally, to maximize profit is to minimize cost.
The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed $640,000 in the common stock account and $5.8 million in the additional paid-in surplus account. The 2015 balance sheet showed $680,000 and $6.3 million in the same two accounts, respect..
In your own words, summarize the article, "Tourism Investment Monitor," by Tourism Research Australia, May 2015. In particular, what are the main messages of the article? Use appropriate diagrams to answer: Do you think increasing investment in Au..
Explain how that the balance sheet balances if these are the only assets and liabilities.
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