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If inflation was the most significant problem facing the economy, what would be the appropriate monetary policy response?
a) increase the discount rate
b) decrease reserve requirements
c) buy government securities
d) all of the above would be appropriate
e) none of the above would be appropriate
Consider a monopolist with demand curve P= 100-Q/2 . The total cost of production is 10Q + 1500 for positive ouput and 500 if it shuts down production. Illustrate what is the maximum profit the monopolist can earn (assuming no possibility of price..
Extensive margin models use Rogerson (1988) style lotteries in order to simplify the savings problem under non-full-insurance.
Because of the free-rider problem
You deposit $10000 into an account paying 8% interest compounded quarterly. You want to make withdrawals of $1300 each year for the next 15 years. If you were to make two equal deposits, one in year 5, the other in year 10, how much would they need t..
Why are entrepreneurs willing to supply goods and services for consumers at attractive prices? Is it because they care personally about the consumers?
Under what conditions might the Justice Department approve a merger between two companies that operate in an industry with a premerger Herfindahl-Hirschman index of 2,900 if the postmerger index is expected to increase by 225.
Elucidate how would an increase in airfares affect the number of highway fatalities in any one year
discuss how the company you selected should increase its competitive stance in the marketplace and how management would implement the recommendations. Provide specific examples to support your response.
Explain why PC is likely to be related to parent's income. Would parent's income be a good Instrumental Variable for PC?
Show the effect of each of the following events on the market for coffee by stating 1) if the equilibrium price went up, down, or stayed the same and 2) if the equilibrium quantity went up, down, or stayed the same.
Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective.
Sweden has a floating exchange rate. It is considered that the output is lower than the potential and there is disinflation which sometimes leads to deflation. What can the central bank do in this mode to stimulate the economy? What is the impact of ..
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