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Suppose in the Republic of Madison that the regulation of banking rested with the Madison Congress, including the determination of the reserve ratio. The Central Bank of Madison is charged with regulating the money supply by using open market operations. In April 2011, the money supply was estimated to be 52 million hurls. At the same time, bank reserves were 6.24 million hurls and the reserve requirement was 12 percent. The banking industry, being "loaned up," lobbied the Congress to cut the reserve ratio. The Congress yielded and cut required reserves to 10 percent. What is the potential impact on the money supply? Suppose the central bank decided that the money supply should not be increased. What countermeasures could it take to prevent the Congress from expanding the money supply?
Use the following information for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers firm will employ to maximize profits.
There are over 5,000 banks in United State. more than ten times the number per capita than other industrialized countries.
He proposed an rise in ethanol produced from corn and stalks and leaves from corn and other grasses. What is the likely impact of these two events on food prices in the United States.
A firm uses a single plan with costs C = 160 + 16Q + .1Q 2 and faces the price equation P = 96 - .4Q. The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units.
Elucidate what would have been the economic effects of this. Describe the pros and cons.
Campus Print Shop is assume of purchasing a new, modern copier that automatically collates pages. The machine would cost $22,000 cash.
Assume that gasoline retailing industry is perfectly competitive, constant expenses, and in long run equilibrium. If the government unexpectedly levies a 5-cent tax on every gallon sold by gasoline retailers,
Differences between Classical and Keynesian views of economy. Explain the situations that led to development and dissemination of Keynesian economic theories.
Make a short paper which relates how specific material from economic course where we cover supply and demand, elasticity and etc.
Explain why the following statement is false: If a firm's output is increasing and marginal cost (change in total cost divided by change in quantity) is rising, then average total cost (TC/Q) must be rising also.
Ilucidate the estimated demand for the company's product. Determine the point cross price elasticity.
Elucidate as carefully as you can why borrowers would be willing to pay a higher rate of interest.
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