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Suppose commercial Bank A receives a new $100 deposit.
a. What will be the total change in money supply as the result of this increase in deposits? Explain in detail.
b. Discuss any ONE reason why the total change in money supply can be less that your answer in part a). (Think about what does the change in money supply depends on).
Assuming paper is sold in a competitive market, what is the market price? how many tons of paper will be produced per year at that price? what is the efficient annual output of paper? how can a corrective tax achieve efficiency?
Illustrate what is the own price elasticity for ATM fees charged to non-customers.
Raising chickens requires several types of feed, such as corn and soy meal. Consider a farm in the former Soviet Union. Try to describe how dicisions on the number of chickens to be raised, and the amount of each feed to use in raising them, were ..
Calculate the payback period for an asset that has a first cost of $40,000, a salvage value of $8000 anytime within ten-years of its purchase, and generates income of $6000 per year.
Solve for the intertemporal consumptions that maximize utility. Illustrateyour results using a carefullty labelled diagram. What is theutility level of the agent at the optimum. Explain why this is likeconsuming a cake on a desert island.
What are the primary functions of the Fed?
5120 Economics Spring Assignment. Consider the firm investment model (from Section 9.2 and lecture) but without adjustment costs (so C(I) = 0 always). What are the first-order conditions for investment and the capital stock under this model? (use th..
What is the difference between money and bonds in this model. Why do people hold money in this model when bonds pay a positive rate of return and money doesn't.
What was the total amount of withdrawals for the year and what was the net income?
"Economic models display a simplistic version of reality that is easily understood. Only the most important aspects of the prediction or the assumption at hand are included in the model (McEachern, 2017) allowing for the complication due to too mu..
Explain how money laundering usually takes place and how an organized crime leader like Beast generally goes about it. Include in your explanation the connection between money laundering and foreign banks.
With no government action to control pollution, what is the quantity of electricity produced, the price of electricity, and the marginal external cost.
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