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First Bank has total deposits of $2,000,000 and legal reserves of $220,000. a. If the reserve requirement is 10 percent, what is the maximum loan that First Bank can make, and what is the maximum increase in the money supply based on First Bank's reserve position? b. If the reserve requirement is changed to 5 percent, how much can First Bank lend, and by how much can the money supply be expanded?
What determines price elasticity of demand for a product. key determinants of price elasticity of demand are as follows: i. Availability of close substitutes- gas stations across street, very elastic.
If I sell 22,000 units and my annual costs are technology=$5000, postage & handling=$1000, Misc=$3000, inventory=$2000, equipment=$4000, and overhead=$1000. What would my monthly costs be if my fixed costs are technology, equipment, and overhead.
In "Final Jeopardy" (pp. 234-242), Stephen Baker expresses an interesting look at the way technology, especially in terms of machines, could dramatically change the relationship between mankind and technology—not just helping us to locate information..
q. use the subsequent demand schedule to determine total also marginal revenues for each possible level of
Explain using a diagram how a tax cut in period two affects consumption in both periods. Assume that average consumer does not believe that he/she or anyone in family will ever have to pay higher taxes in future to offset current cuts.
How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance?
Suppose the government sets an effective price floor (that is, a price above equilibrium) in the market for oranges and agrees to buy all oranges that go unsold at that price. The oranges purchased by the government are discarded.
the student has decided to save money in equal monthly amounts for 48 months and then pay cash. If the student earns 0.75% per month interest on the money she saves, how much money is the monthly savings?
Calculate the following: Rate of Return and Calculate the following: Net Present Value Index
A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 ? Q. Suppose fixed costs rise to $200. What will happen in the market?
If income elasticity of demand is 2.12, it means that quantity demanded will __________ by 2.12 percent for every __________ percent __________ in income.
Consider the market for beef. Suppose the price of grain used to feed cows increases. How does it affect the equilibrium price and quantity of beef? Explain with a diagram.
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