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Monetary Policy & an expansionary Gap- Suppose the Fed wishes to use monetary policy to close an expansionary gap.c. Determine whether each of the following increases, decreases, or remains unchanged in the short run: the market interest rate, the quality of money demanded, investment spending, aggregate demand, potential output, the price level, and equilibrium real GDP.
Compute the growth rate of the dividend, g. (You can either compute the ROE*plowback ratio or compute the annual growth rate of dividends) e) Based on this information, what should the price of the stock be today using the constant-growth dividend d..
Suppose the firms compete by simultaneously choosing price and fine the best response function of each firm as a function of the other firm's price. Compute the equilibrium price and quantity for each firm.
What choice of payment systems will be used and how you will address privacy and other relevant ethical concerns - how you will address legal issues connected with the e-commerce business
Consider the following game: There are 5 pirates on a boat, conveniently named P1, P2 P3, P4 and P5. These 5 pirates have just dug up a long lost treasure of 100 gold pieces. They now need to split the gold amongst themselves, and they agree to do..
Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale.
What is the own price elasticity of demand when Px = $240? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above $240?
United States winter wheat production rise dramatically in 1999 after a bumper harvest. The supply curve shifted rightward; as a result, the value reduced and quantity demanded increased
a pollutoin control agency is considering the following rgulatory policies: (i) taxing the use of one input that increases pollution. (other inputs affect pollution too, both increasing and decreasing it) (ii) taxing the final goods that firms pro..
Discuss and explain the income and consumption relationship make sure to describe marginal propensity to consume. If you received an extra dollar, how much of it would you spend?
There are 200 pounds of food on an island that must be allocated between 2 marooned sailors. The utility function of the first sailor is given by Utility= ( F1) Where F1 is the quantity of food consumed by the first sailor. For the second sailor u..
When developing short-run cost curves, it is supposed that all firms in perfect competition have the same cost curves and they all make identical short-run profits or losses.
When a bank raises its interest rates on loans, it typically sees fewer customers visiting to apply to borrow funds. 1. What is the independent variable 2. What is the dependent variable 3. What is the mathematical relationship between these two vari..
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