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People's expectations about the future state of the economy (in other words, their general pessimism or optimism about the future) are very important in determining their current economic behavior. Given that, I've had students in the past suggest that, instead of giving people reliable information about the economy, it would be better for the government to lie and tell people that everything is fine, even when it really isn't. Discuss the merits of such an approach. Would the government be able to prevent a recession by lying about the state of the economy?
The main liability on the Federal Reserve's balance sheet is. Third Bank has reserves of $12.3 million and transaction accounts of $115 million. If required reserves are 10 percent of transactions accounts, Third Bank has excess reserves of
Which of the following would be EXCLUDED from 2006 GDP? (a) the sale in 2008 of the 2008 farm crop (b) the sale in 2008 of a factory built in 1995 (c) the construction of a factory in 2006 (d) none of the above.
Contrast the economic and social roles of people who labor under slavery, feudalism and capitalism and explain how ideology legitimated those roles.
If when the price of Product E decreases by 9%, this causes its quantity demanded to increase by 14% and the quantity demanded for Product F to increase by 12%, what is the cross-price elasticity of demand? What is the relationship between these good..
A study published by the Havard Business Review in January, 2000 found that intellectual property represents approximately__________ of an average firm's value.
The average avoidable cost for a fringe firm is AAC(q) = 20/q + 5q. The marginal cost function for a fringe firm is MC = 10q . There are 10 fringe firms. The marginal cost of the dominant firm is 2 and the demand function is Q = 100 - P. What is the ..
Suppose the relationship between Demand for good x (Qx) can be described by the following linear relationship
A nation’s aggregate real income is growing at an annual rate of 3.3 percent, and its current rate of growth of per capita real income is 0.4 percent. What is the rate of population growth in this nation?
What is money and why do people hold money even though it pays a lower return than other forms of financial assets. The Fed wants to reduce the money supply what are the three ways it can do that? What is a banking panic? Prior to FDIC, why might a s..
Sage has $80 to spend this month on CDs and/or DVDs. A CD costs $10 and a DVD costs $20. Draw Sage’s budget constraint (or budget line), with the number of CDs purchased on the vertical axis. What is the opportunity cost of the second DVD?
In what situations will a court impose a strict liability standard instead of a negligence standard? Provide a real-world example of a strict liability case. Is imposing this standard fair? Are strict liability standards fair as a general rule?
Why does entry and exit of firms occur in the long run and not in the short run? Using appropriate diagrams, discuss the role or importance of exit and entry conditiontions in a perfectly competitive market? What is the significance of the shut-down ..
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