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After the 2008's Great Recession the Fed lower the Fed Fund Rate (r) to zero reaching its lower bound and facing a binding situation, i.e. r = 0. What effect will this have on the effectiveness of fiscal policy? Specifically, what will happen to the output effects of a given change in government spending?
A firm increases the quantity of all resources it employs by 5 percent. As a result, output increases by 7 percent. This is an example of: A. Minimum efficient scale B. Diminishing marginal returns C. Decreasing long-run average costs D. Economies of..
Bell Computers purchases integrated chips at ?$350 per chip. The holding cost is $36 per unit per? year, the ordering cost is $119 per? order, and sales are steady at 405 per month. What is the optimal order quantity and the minimum annual cost for B..
Suppose the tax on liquor is increased so that the tax goes from being a "medium" tax to being a "large" tax. As a result, it is likely that:
Explain why a nation that imposes tariffs on imported goods may find its welfare improving should the tariff result in a favourable shift in the terms of trade.
What is meant by the monetary approach to exchange-rate determination? What are its major predictions concerning exchange-rate movements? Give examples.
Gini & Marcoux give a discussion of Competition. They begin with a discussion of sports and move to a discussion of competition in business. What do they say are some of the similarities and differences between competition in sports and in business. ..
From a development/business standpoint, sustainability has been defined as the triple bottom line which includes consideration of economic, environmental and social factors. Is this sufficient? What are the strengths and weaknesses of the triple bott..
Suppose that the banking system currency has no excess reserves and that a bank receives a deposit into a checking account of $10,000 in currency. If the required reserve ratio is 0.20, what is the maximum amount that the BANKING SYSTEM can lend out?
List four different sources of externalities associated with education service that make it likely that an inefficiently small amount of the service would be provided in competitive equilibrium without gov intervention. Explain why each source you li..
q.apex corporation has an equity cost of capital of 14.4 and a debt of 6 and the firm maintains a debt equity ratio of
In 2013, the furniture store PB produced 10 mahogany desks. One of them is sold to Jeanine for $3,259, later that same year Jeanine sold the desk to Pamela for $1,802. The remaining desks were not sold to anyone that year and stay in PB's inventory a..
Explain the output effect and the price effect for an oligopoly. How does each influence the oligopolist's production decision?
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