Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider a country called Hitech where new arrangements for making payments, such as credit cards and ATMs, have been enthusiastically adopted by the population, thereby reducing the proportion of income that is held as real money balances.
a) Assume the money demand equation is given by (M/P)d=kY , where Y denotes aggregate income and k is a constant (exogenous) parameter. Given the context above, what does k represent and how has k changed as a result of the adoption of new payments in Hitech?
b) Assuming market clearing the money market, use the quantity equation to derive an expression that relateds k with the velocity of money. From this expression, has the velocity of money in Hitech increased or decreased as a result of the innovations in payment arrangements?
c) Now suppose there is another country called Lotech which has not seen the innovations in credit cards and ATMs that Hitech has. If the rate of money growth and the growth rate of real GDP were the same in Hitech and Lotech over this period, then how would the rate of inflation differ between the two countries? Carefully justify your answer using the Quantity Theory of Money.
Assume that the cost of electricity from a natural gas plant is 5 cents per kilowatt-hour and that the cost of concentrating solar power (e.g., production from a plant like Ivanpah) is 13 cents per kilowatt-hour. Based on our discussion of the ex..
1. bertrand duopolists firm 1 and firm 2 face inverse market demand p 50 - q. both have marginal cost mc 20.
What percentage of the variation of your dependent variable is explained by the independent? d) (10) Suppose the corruption measure was flipped. That is, the least corruption possible is rated a 10, and the highest corruption level is zero. Argenti..
Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in every respect except that Fly Right bought its airplane for $500,000, while Fly by Night rents its plane for $30,000 per year. Analyze fixed costs, Ma..
A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: ln M = 14.666 + .021 ln C ? 0.036 ln r, where M denotes real money balances, C is an index of consumer confidence, and r is the in..
Fairfield began a living wage that paid all landscapers in the city a wage above the current market wage. Vacaville, a neighboring city, did not begin a living wage. Below are employment date for the year before and the year after the living wage ..
a tell me why you selected the appropriate exponential smoothing method by commenting on your y data
The best computer company just developed a new computer chip on which it immediately requires a patent - draw a diagram that shows the consumer surplus, producer surplus and total surplus
The government has imposed a tax on gasolone. What is the amound of the tax per gallon of gasoline How much tax revenue will government collect from this tax How much of the tax is paid by consumers
What would be the effect if the rate is lowered to 4%, or raised to 9%? Why would the federal reserve change these rates?
The Arena Corporation, which sells engines, has a uniform value of $500, which is charges all its consumers. But, after its competitors begin to cut their rates in the California market to $400, Arena decrease its price to $400.
The Federal Reserve is most likely the most independent government agency in the US. Independence means that Fed is free from presidential and congressional political pressures.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd