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Suppose in the banking system as a whole, demand deposits are equal to $80,000,000 and reserves are equal to $17,000,000 with a legal reserve ratio of 10%. If the Fed doubles the required ratio, by how much will the money-creating potential (also known as the maximum lending potential) of the banking system as a whole drop?
Describe the effect of such clauses on both the government, and other customers, noting, inter alia, the effect on the selling firmâ.
Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.
Keynesian thinking dominated US (and other developed-country) policy-making well into the 1970s, although the "classical" counter-arguments kept up a steady criticism:
If the government of Amityville used a subsidy of $S per unit to encourage the optimal amount of chocolate production, illustrate what level should that subsidy be.
It cannot be as the inflation by definition real wages have factored inflation in.
Think about the trade off in work and leisure during a given day, and from day to day. During a given day, does opportunity cost of work rise, decline, or remain constant with each additional hour of work?
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
Fewer potatoes are demanded when the price of rice has fallen from $ 0.25 to $0.10 cents per pound-The Molly Jock wants to buy a high definition television to watch the Olympic Greco roman wrestling competition in Beijing.
The marginal propensity to import increases from 0.3 to 0.4. Find the new multiplier of the economy and explain why the multiplier has changed.
Empirical studies reveal a positive correlation among ethical conduct in a corporation and job satisfaction.
Draw the per capita production function and supporting curves to capture the economy and provide a brief economic explanation of the consequence of lower savings on long- term growth rates.
Determine what does a contractionary gap imply about the actual rate of unemployment relative to the natural rate?
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