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suppose that Mr Rich withdraws $ 5 Million from his transactions account at the bank of america and holds the money . Assume a reserve requirement of 25 purcent and no excess reserves in the banking system prior to this withdrawal . How will the money supply be affected by this transaction ? what is the ultimate change in deposits, loans, and reserves in the banking system? Explain in detail.
Explain why the different definitions are important also explain the different procedures of the money supply.
Illustrate what effect this could have on the price of cigarettes also the quantity of cigarettes sold
what is the size of the bank's actual reserves. Required reserves are 10 percent of transactions deposits under the assumptions of the simple multiplier formula, then eventually the money supply will increase by.
Will there be significant progress on the poverty front, because of an increase in GDP.
Elucidate how the asset demand for money as a green line draw the transactions demand-for-money curve.
Distinguish between resource market and product market in circular flow model. In what way are businesses and households both sellers and buyers in this model. What are flows in circular flow model.
Briefly explain why the three variables are appropriate explanatory variables to predict the consumption of services or why they are related to consumption.
Illustrate what would happen to the profit maximizing level of output if the market price suddenly rose to $54 per case. Explain why the output level changes.
7) in 1988, the average wage rate was 9.45 an hour and in 2008 the average wage rate was 18 an hour. The CPI in 1988 was 118.3 and in 2008 it was 215.3. which is real wage rate is higher?
Assume that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition.
what hypothesis we can use to show whether the change in female literacy rate in both the models is significant or not.
Elucidate what type of returns to scale does this technology represent.
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