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Q1. Assume that the reserve requirement is 25 percent. If a single bank has excess reserves of $500,000, Explain individual bank can expand loans by a maximum.
Q2. For over a century the family of Charles Martel dominated which office, which served as a sort of "prime minister" to the Frankish court?
Q3. Explain why group incentives are more erective at increasing group output than individual incentives when group members are complements in the production function (i.e. when the amount that i can produce depends on how hard j works).
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
Jane wants to buy a beautiful doll as a gift for her sister's birthday. What is the advantage to society to correct the externality?
Which is a tax on profits generated from mining of iron ore and coal.
Could trade help reduce poverty in Brazil and other developing countries. How do product and factor prices and wages eventually equalize between the two countries.
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
The Texas Transportation Institute at Texas A&M University conducted a survey to determine the number of hours per year drivers waste sitting in traffic.
In 2003, when music downloading first took off, Universal Music slashed the prices of CDs from an average of $21 to an average of $15.
When would it make sense for a factory that is losing money to remain in operation
Select one market segment, and describe in one or two paragraphs what features the cell phone might have in order to be attractive to this segment.
Describe the difference between Economic contraction and Economic expansion
An increase in the number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
Assuming that land and labour are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Texas.
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