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1. Why does a modern industrial economy need a central bank?
2. What are some reasons behind the worldwide trend toward greater central bank independence? Are there arguments on the other side?
3. Explain why the quantity of bank reserves supplied normally is higher and the quantity of bank reserves demanded normally is lower at higher interest rates.
The government introduces a subsidy s=10 per unit of sugar exported and at the same time it doesn't let any imports in. Calculate the new (i) domestic price, consumption and production, (ii) world price and quantity exported by the country. What w..
Show how the allocation of the loss of total consumer and producer surplus between suppliers and demanders described in part b depends on the price at which broccoli is sold. How woiuld the loss be shared if P = 140
Its total cost of production is given by TC = 800 + 18 Q + 2 Q2, and thus its marginal cost is MC = 18 + 4 Q. The market price is currently P = $54. In the short run, what is the volume of output that maximizes Commodity Inc.'s profits.
what is the value of consumer surplus in this market?
Evaluate each question, explaining in 2 sentences per question why each of these questions is problematic. In the course of criticizing each question, demonstrate your knowledge of several key features of Chinese religious culture. Be sure to give..
What event can be used to explain the increase in the employment of information technology workers during the 1990s? What about the decrease in employment during the 2000s?
Estimate the preceding regression. What is the interpretation of the various coefficients? Give a logical reason for why the results are this way
Suppose a country has a money demand function (Md/P) = kY where k is a constant parameter. The money supply grows by 12 percent per year and real income grows by 4 percent per year. What is the inflation rate
(Measuring Unemployment) Suppose that the U.S. noninstitutional adult population is 230 million and the labor force participation rate is 67 percent.
Suppose Mendonca is currendy producing 60 pounds of vegetables per period. How much meat is it also producing? assuming that resources are fully utilized?
The only policy tools available to central banks are interest rates and the money stock.
Two years after the$14,000 deposit, he makes another deposit in the amount of $12,500. Four yearsafter the $12,500 deposit, half of the accumulated funds is transferred to a fundthat pays 8% interest compounded quarterly. How much money will be in..
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