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Forward commitment by the Fed has which of the following impacts?
Forward commitment creates moral hazard in lending, as banks know that the Fed will continue to pump reserves into the system.
Forward commitment encourages lending because banks do not fear that the Fed will suddenly reverse the policy.
Forward commitment eliminates all flexibility in monetary policy.
Forward commitment encourages excessive lending as banks try to take control of as many reserves as possible before the policy is exhausted.
A price ceiling for maple syrup caused a shortage,
Let the demand curve for a good be given by P=60-Q. Also, suppose that the marginal and average cost of producing the good is MC=AC=20. For this demand curve, MR=60-2Q. Find the competitive and monopoly quantities and price.
Suppose that you are in the business of providing cat grooming services and you are a member of an association who has proposed legislation anybody wanting to offer cat grooming services would have to pay for extensive training and pass a series o..
suppose the market for a certain pharmaceutical drug consists of domestic united states consumers and foreign
"Money" Please responds to the following: Given our current economic situation, decide the steps that the Federal Reserve should take to help stabilize our economy.
Assume that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.
a. Graphically explain what happens to the reservation wage if someone needs to spend some of their non-labor income on day-care services in order to become employed. b. Graphically explain what happens to the reservation wage if someone experience..
Consider a closed economy that has no government. If saving is negative, then investment should also be negative. Is it possible for investment to be negative? What might be the most plausible channel for it to be so?
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The demand curve for the perfect competitor is horizontal because. For each example below, identify which statement is not characteristic of a perfectly competitive industry.
the elasticity of demand for home computers is -2.5 the elasticity of demand for business computers is -.90 and the
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