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Q. Suppose that the Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier, assuming that excess reserves are held to zero and there are no currency leakages? What are the money multipliers for required reserve ratios of 0.15 and 0.20?
Distinguish between the resources market and the product market in the circular flow model.
A farmer has a production function f(L) where the input is capital (L). The cost of this loan is L(1+i). The farmer also has an outside option (loan from family member) which generates a profit of A.
Do protectionist policies benefit producers, consumers, workers, or the government
Sketch the extensive form of the game, carefully labelling the players that move and the actions they have available
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
Suppose that the only input used in the generation of solar energy is sunlight
As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Excise tax is levied on the buyers of a good, then after the tax buyers will pay for each unit of the good.
Elucidate the marginal revenue from the fourth worker
Can you find a Nash equilibrium in pure strategies that is not efficient. Find the sub game perfect equilibrium as a function.
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