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When the Fed purchases government securities ________ loans end up being made because ________.
A) fewer; required reserves in the banking system increase but desired reserves decrease
B) more; excess reserves in the banking system increase
C) fewer; excess reserves in the banking system decrease
D) more; excess reserves in the banking system decrease
E) fewer; excess reserves in the banking system increase
The annual inflation rate is the yearly percent change in the ....
Suppose that the State of Connecticut decides to subsidize the cost of purchasing a treadmill for cardiac patients, as prescribed by their doctors. Prior to the program, the equilibrium price of treadmills was $800, and the equilibrium quantity purch..
You were told that a certain cash flow sequence started at $3000 in year 1 and increased by $2000 each year. How many years were required for the equivalent amount worth of sequence to be $12000 at an interest rate of 10% per year?
Explain how does the trade deficit affect U.S. economy. Explain how does it affect the firm or organization you work for.
Cultural sensitivity is crucial to local and global success. It is very difficult to be aware of and sensitive to issues and traditions we are ignorant about. How can we decrease our own ignorance? Can we be proactive about it, or do we just have to ..
Calculate the purchasing power parity exchange rate between the Swiss franc and the dollar. Based on your calculation, is the SF overvalued or undervalued.
Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer.
The demand price for a monopolistic firm’s product is a function of quantity q and quality s: P(s,q) = s(a – bq) , while the firm’s production cost is a function of quality s only: C(s, q) =0.5s^2. Find all critical points (s,q) of the monopolist’s p..
A production process exhibits economies of scale if:
q1. elucidate relationship among production curves average product and marginal product also cost curves average
A leading organization, inspired by the Grameen bank, is attempting to provide loans to small farmers. it is leading to farmers in groups of two. Explain three reasons why a strategy of group leading may be better than a strategy of lending to indivi..
What would happen if real GDP growth fell to 2% per year? (f) Again go back to the baseline case; what happens to inflation if money velocity rises at 1% per year. What might cause money velocity to change like this?
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