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Who has control of the money supply in the US Economy? How does Open Market Policy Work? How can the buying and selling of Bonds by the Fed increase or decrease the money supply? How does changing the money supply have an impact on interest rates? Why does changing the interest rates have an impact on the economy?
Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
What is the difference between contractionary and expansionary monetary policy? What is the intention of each policy under a depression, recession, or robust economy? Which type of monetary policy is more appropriate today and why?
If $30 can buy a dozen roses in the United States, and purchasing power parity holds, then $30 should also be enough to buy a dozen roses in Turkey—or, more specifically, the Turkish lira equivalent of $30 should be sufficient to buy a dozen roses in..
Certain environmental laws prohibit EPA from considering the costs of meeting various standards when the levels of the standards are set. Is this a good example of “putting first things first” or simply an unjustifiable waste of resources? Why?
Over the past 50 years improvements in transportation and communication technologies has made it easier for companies to engage in business outside domestic borders. What forces motivate organizations to go global?
Plot the demand curve of the Firm. With all others factors remaining constants, the demand equation becomes as follows:
Two division managers at King Size Manufacturing have been in a long discussion with top management about allocation of capital spending over the next three years. His bonus is based on total sales and he wants a larger bonus for himself and his mana..
Calvin is risk averse with V(W) = √W. Assume Calvin has initial wealth W = 10 and can make an investment that pays double or nothing with a probability of success of 60%. How much will Calvin choose to invest? Assume Calvin can make a fractional inve..
The Wall Street Journal reported that automobile crashes cost the United States $162 billion annually (The Wall Street Journal, March 5, 2008). The average cost per person for crashes in the Tampa, Florida, area was reported to be $1599. What is the ..
If the seller cannot discriminate, but must charge the same price p1 = p2 = p to each group, what will be her profit-maximizing price? Which, if any, consumer group benefits from price discrimination?
How do warranties and guarantees act as signals? What economic information problem might they address?
The European Engine Company (EEC) is a multi-national manufacturer of small gasoline and diesel motors.
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