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Part A
1. Why is the money multiplier in the United States smaller than the inverse of the required reserve ratio? Provide one (1) reason.
2. Explain why depositing cash into a checking account does not change the money supply. Provide one (1) supporting fact.
3. Explain why the money supply does not change when one individual writes a check to another. Provide one (1) supporting fact.
Part B
1. Describe one reason why the flexibility of wages and prices tend to favor the Keynesian economic view in the short run and one (1) reason why the flexibility of wages and prices tend to favor the classical economic view in the long run.
2. Refer the figure below and explain what happens in each graph (A, B, and C) when an economy is moving from a recession (point a) back to full employment.
a restaurantbar is analyzing its pricing of beer. it has determined that the price elasticity of demand for beer is
The demand curve is given by: QD= 500- 5Px+ 0.5I + 10Py-2Pz where QD= quanity demanded of good X Px= price of good X I= consumer income, in thousands Py= price of Good Y Pz= price of good Z a) Based on the demand curve above , is X a normal or infe..
in an attempt to increase revenues and profits a firm is considering a 4 percent increase in price and an 11 percent
Assume that consumption decisions are made according to the permanent income theory. Which of the following would lead to the largest increase in current consumption?
A municipality wants to sell 30 year bonds to pay for a new WWTP. Investors want a market rate of return on their money of 3.5% or higher for the tax free bonds. The City needs to raise $32.5m today.
Fall proportionately more than the change in GDP, Fall proportionately less than the change in GDP, Rise proportionately more than the change in GDP
What are the major reasons a multinational corporation would engage in Foreign Direct Investment (FDI)? Explain the factors in Michael Porter's "Five Forces Model" which affect the capability of any firm in an industry to earn the profit.
let the exchange rate be defined as the number of dollars per japanese yen. assume that there is a relatively lower
according to kluver what are the ramifications of technology and globalization on global communication?compare kluvers
question 1. define any key terms that you feel are important in answering the following question as they are defined in
What factors, specifically, affected the demand for lemonade - What pricing strategies did you use
What is the marginal product of the third worker? What is the marginal revenue product of the fourth worker? What is the marginal cost of the sixth worker?
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