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Reserve Requirements and Economic Growth
Banks fail when all depositors try to withdraw money at the same time. One way to prevent this problem would be to require banks to hold 100% of deposits on hand. Why would this not be a desirable thing to do? What would happen to the banking system? What would you expect to see happen to the cost of a checking account if banks could not make loans? What would happen to the amount of investment made by businesses? Explain.
Comparing which is the current quote has the Japanese dollar appreciated or depreciated.
Discuss, relating in part whether such highways are public goods and whether or not privatization should work.
If a industry wants to raise total sales revenue. What happens to the demand for beer if the price of soda falls.
Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.
Explain why may a government solution to a marketplace failure worsen the market failure.
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
Fully discuss the method by which the Federal Reserve uses the banking system to create new money.
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low.
Elucidate action did the FOMC take, if any, as per the level of the fed funds rate. Why did it make this choice
In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)
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