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Question 1: Assume that the reserve requirement is 8 percent. All other things equal, will the money supply expand more if the Federal Re serve buys $4 billion worth of bonds or if someone deposits in a bank $4 billion that they had been hiding in their cookie jar? If one creates more, how much more does it create? Support your thinking.
The U.S. Senate has passed legislation extending Bush-era tax cuts for high-income earners to middle-class Americans earning up to $250,000 per year.
Explain how financial markets promote economic growth in developing countries. Also explain if MP has any long run impact - use AD-AS model.
Explain how regular and lasting were the past trends. What are the chances of these patterns are changing. How accurate is the historical date that we use in time series.
your company invests funds in greece. the company claims that the investment will grow to 10 times the original
What is the velocity of money if the nominal interest rate is constant? How will the level of the velocity of money change if there is a permanent (one time) increase in the nominal interest rate, holding other factors constant
How would you conclusion change for the winter months, if bad weather makes it likely for traffic jams on the highway to increase to 6 days per month?
If not, then what is the importance of these smaller companies to the national economy?
Differentiate between the conditional convergence in the Solow and AK Model
Explain, in words, why an increase in government purchases may be desirable in the short run, but possibly undesirable for the economy in the long run.
Explain how the level of saving is determined in the simple Keynesian consumption function. What is the effect of an increase in disposable income on the level
What do you think branded products usually are of higher quality than generic products and therefore justify their higher prices.
In 1980s, 1990s, and the 1st decade of the 21st century, the US experienced a significant inflow of capital from abroad. Use a diagram of the United States capital market, demonstrate the effect of this inflow on rental price of capital in the US and..
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