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-Explain the difference between currency and bank money. Which institutions in Canada are responsible for producing these two types of money? Explain fully.
-Why is money important for an economy?
-Suppose that the Bank of Canada sells $2 billion of bonds on the open market. Use the Keynesian transmission mechanism to explain fully how this sale will reduce GDP by $40 billion if the money multiplier is 4 and the income multiplier with respect to the money supply is 5.
-Explain fully why the Monetarist School claims that monetary policy is stronger than fiscal policy in stabilizing the economy to reduce recessions and inflations.
-Implementation of monetary policy is fraught with many pitfalls. One important problem is deciding whether the central bank should target the money supply or target the interest rate. Assuming that the goal is to reduce inflation, explain the primary concern with each of these two different targets.
What are the two properties of public goods? List an example of both public and private goods, andindicate whether each of them possess these two qualities. Explain why or why not.
Locate in the current Beige Book report and compare consumer spending for the entire U.S. economy (in the Summary) with consumer spending
A firm located in a small town in East Coast relocates to West Coast. Workers in that town cannot sell their homes to move with the firm. The resulting unemployment is called:
What is the meaning of a four-firm concentration ratio? Interpret what four-firm concentration ratio of 60 % would mean. Interpret what a score of 90% would mean for the four-firm concentration ratio
What is credit rationing? What are the possible reasons? SelfHelp is a newly formed credit cooperative which receives partial financing from government banks. Members of SelfHelp can deposit savings with the cooperative and they can also turn to Se..
Analyze the impact on the quantity of loanable funds available in this market, and the effect it has on the interest rate for these loanable funds
There is absolutely no distinction between equilibrium in the classical model and the model of long-run macroeconomic equilibrium."
Explain why should you, as a future employe, be concerned about the downward trend in labor productivity increases that have been observed since the early 1970s.
Does it use the market value, price index, or market basket? What does the country GDP equal to?
Tasks and task ownership Resource allocation Recommend any organizational change management strategies that may enhance successful implementation. Develop key success factors, budget, and forecasted financials, including a break-even chart. Create..
1) Distinguish between discretionary and nondiscretionary fiscal policy. 2) Differentiate between expansionary and contractionary fiscal policy.
Assume worker productivity increased at the rate what rate of increase in RGDP would be sustainable without increasing inflation pressures.
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