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Q. suppose the Federal reserve buys 400000 dollars worth of securities on the open market. if the reserve requirement is 20 percent and the banks hold no excess reserves what will happen to the total money supply?
Q. Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
Assume that the marginal propensity to save increases. If the Fed wants to keep the level of output from fluctuating, should it undertake open market purchases or sales? In yo
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10 at an output level of 8 un
What effect does expansionary monetary policy (under flexible exchange rate) have on the supply and demand for dollars in the FX market? What happens to the nominal price of t
The Belford family owens a farm near San Angelo, Texas. Three alternatives exist for how to use the farm: a.) Grow cotton. Cotton yield would be 500 pounds per acre. The price
Linda Sims is the manager of the accounting department and Jose Martinez is the manager of the sales department for a production company. This is a fast growing firm, and the
Suppose that a risk-neutral investor has a choice between buying a one-year bond paying 4 percent today, a two-year bond paying 5 percent today, a three-year bond paying 5.3 p
For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3%
Though your answer needs to be correct in terms of economic theory (so be sure to read the assigned chapters), creativity and having fun with it is strongly encouraged.
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