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1. For Keynes, the speculative component of money demand was volatile. This made the demand for money and the money multiplier volatile, so that monetary policy became an unreliable tool for stabilization. What were Keynes's reasons for his assertion on volatility? Do you think such volatility exists in the modern economy? Has it increased or decreased over time?
2. For Friedman, the money-demand function was highly stable. This made the money- income multiplier highly stable, so that changes in the money supply had a strong impact on nominal national income. What were Friedman's reasons for his assertion on the stability of money demand?
Has the money demand function in recent years been stable in the sense of not possessing the type of volatility asserted by Keynes? Discuss.
In many economies in recent decades, the money-demand function has shifted over time due to ?nancial innovations. Have these shifts invalidated Friedman's assertion, or is this instability of a different kind from what Friedman and Keynes had in mind?
The market demand curve for the industry is D(P) = 240- P/2. At the equilibrium market price, each firm produces 20 units. what is the equilibrium market price, and how many firms are in this industry.
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Identify methods and tools common to addressing economic challenges in the health care industry - Discuss how the methods and tools identified relate to health care reform.
A firm with market power charges a price that is than the price charged by a perfectly competitive firm. A potential advantage of this to customers is that lower, it allows the firm to increase its production.
Grow Fertilizers Company purchases a gravity settling tank of the $30,000 purchase price. The company finances 30% of the investment with a loan to be repaid with eight equal semiannual payments at an annual interest rate of 12% compounded semian..
if the four-firm concentration ratio of an industry is 75 what does it mean?industry a is composed of five large firms
Sugar prices in the United States are several times higher than the world price of sugar. This disparity results from a federal government program that keeps enough foreign-produced sugar out of the United States to hold U.S. sugar prices at a hig..
A monopoly firm faces a demand curve given by the following equation: P = $500 ? 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost.
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