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Explain the effect of the following events on the interest rate in the loanable funds market. Demonstrate you answer graphically.
a) tax revenue is lower than expected and people expect cities to default on municipal bonds. They sell thier bonds and hold cash instead.
b) a significant number of people begin to use online banking services, allowing them to lower the average balance on their checking account.
c) economists begin to expect economic growth to pick up. In response, firms increase the amount they spend on capital goods.
Why considering that it snows only once every ten years where Joe lives, Joe's expectations are almost always perfectly accurate." Are Joe's expectations rational.
South Korea can produce a maximum of 600 million toaster ovens or 900 million tons of rice per year. The U.S. can produce a maximum of 700 million toaster ovens or 1,000 million tons of rice per year.
Explain how do I draw a production possibilities curve for 2 products in an economy if a natural disaster affects one but not the other.
Find out the marginal revenue also the marginal cost functions and show them graphically. Find the monopolist's price, output, profit, and the price of the cost margin.
Which of the policies is/are a monetary? - Which of the policies is/are fiscal? - What are the differences between monetary policies and fiscal policies?
For what type of goods does law of one price hold quite well. Since PPP rarely holds at any point in time, is re any substantive meaning to terms overvalued or undervalued currency.
Illustrate what is the ability to pay principle in public Fiance also what are some of the problems implementing it.
Assuming oranges operate in a perfectly competitive market, use a well-labeled demand and supply model to explain how market equilibrium price of oranges is determined.
Compare the column for marginal product also the column for marginal cost. Illustrate what pattern do you see.
Provide one quote and its context for both a positive and normative statement. Evaluate the statement choices of your fellow students.
Illustrate what is macroeconomics. What role does macroeconomics play in your personal financial decisions and the decisions that your organization makes.
Suppose the price of a can of Diet Pepsi is $1. Find out Sally's optimal consumption of Diet Coke as a function of the unit price of Diet Coke (PC).
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