Imagine an economy with only four markets

Assignment Help Business Economics
Reference no: EM131242382

Imagine an economy with only four markets: a market for Commodities (ie goods and services), a market for Labour, a market for Money and a market for Bonds. Show (prove) that if the markets for Commodities, Money and Labour are in equilibrium then the market for Bonds must also be in equilibrium.

Reference no: EM131242382

Questions Cloud

An effective exchange rate for the euro : An effective exchange rate for the euro was 91.62 in January 2005 and 94.44 in January 2013. At the same time, an effective exchange rate for the Japanese yen was 132.41 in January 2005 and 144.12 in January 2013. Overall did the euro and the yen app..
What is my income elasticity of demand for cheez-its : My income decreased by 25% and I purchased 10% more Cheez-Its. What is my income elasticity of demand for Cheez-its? Are Cheez-Its a luxury, normal, or inferior good in this case? Show your work to receive full credit.
About free trade areas-customs unions and common markets : We talked in class about free trade areas, customs unions and common markets. We also discussed basic principles of the WTO, including trade should not be discriminatory and should head in the direction of fewer rather than more barriers. If there ar..
Identify an incentive conflict in a firm : Identify an incentive conflict in a firm, that reduced firm value. As part of your answer, discuss whether or not one or more of the legs of the organizational stool was unbalanced, and if so, how that contributed to the conflict.
Imagine an economy with only four markets : Imagine an economy with only four markets: a market for Commodities (ie goods and services), a market for Labour, a market for Money and a market for Bonds. Show (prove) that if the markets for Commodities, Money and Labour are in equilibrium then th..
Market for system called early warning and response : Suppose that the US Department of Homeland Security is concerned about the prevalence of airborne biological weapons in large sporting events in the US. Begin by assuming that there is no government policy yet. Consider the market for a system called..
Be comfortable with what shifts the supply and demand curve : Learning Objective: In terms of macroeconomics; Be comfortable with what shifts the supply and demand curve, and how shifts in either supply or demand or both supply and demand change equilibrium quantity and equilibrium price. What would happen to t..
Suppose the current equilibrium for gallon of milk : Suppose the current equilibrium for a gallon of milk is $4.00. the milk trade association starts a new advertising campaign that includes a well-received ad during the super bowl causing the equilibrium price to increase to $4.50. But the federal gov..
An examples of an asset being securitized : An examples of an asset being securitized is. Corporate stocks and bonds are the same in that. A purchase of stock on margin is a stock purchase. A random walk of stock prices implies that.  The Modigliani-Miller theory says that

Reviews

Write a Review

 

Business Economics Questions & Answers

  What is the formula for the new budget line

If the government establishes a quantity subsidy on the consumption of a good, it means that the consumer has to pay for each unity of the good its price minus the subsidy. The government decides to impose a quantity tax of t on good 1 and a quantity..

  Illustrate what will happen to equilibrium price

Illustrate what will happen to equilibrium price As a local cable company offers cheaper pay- per-view films, local movie theaters have more unfilled seats.

  Others are gasoline and diesel consumption per capita

The USA Federal Government has decided to embark on Energy Security for the Nation in order to secure future availability of energy for the country. USA is rich in oil and gas resources, but the goal is for the country to be less energy dependent. Th..

  Illustrate what would be the effect of increase in taxes

Suppose that the economy starts at equilibrium and the mpc = 0.8. Illustrate what would be the effect of a $300 increase in taxes once all the rounds of the multiplier process are complete.

  Variable costs represent the costs of acquiring food

Suppose Gus operates a small chicken restaurant in a perfectly competitive industry. His variable costs represent the costs of acquiring food and can be expressed as TVC(Q)=Q^2−(1/2)Q. What are Gus’s sunk fixed costs? What are Gus’s non-sunk fixed co..

  How long will it take them to have a total savings account

If their account earns 6 percent per year compounded quarterly, how long will it take them to have a total of $20,000 in their savings account?

  Environmental sustainability in the european union

Prepare a two to three page report titled "Environmental Sustainability in the European Union (EU)." The report should be based on the publicly available information that you obtained. You may use the report published by the European Commission.

  Two alternative activities to help relieve her backache

Mrs. Siegal has two alternative activities to help relieve her backache. In the first, she can visit a physiotherapist. The total time for a physiotherapist visit, including travel and waiting, is two hours. Mrs. Siegal earns a wage of $20 an hour.  ..

  Federal reserve should trade to increase the money supply

The FOMC wants to expand the money supply by $120 million and decides to buy bonds on the open market. Suppose the reserve requirement is 40% and banks do not hold any excess reserves.

  Events on the market for coffee by stating

Show the effect of each of the following events on the market for coffee by stating 1) if the equilibrium price went up, down, or stayed the same and 2) if the equilibrium quantity went up, down, or stayed the same:

  Citys utility maximizing population

Compute the resulting utility if the population were on million higher and one million lower than the optimum.

  Disadvantage of using rigid policy of fixed exchange rates

Which of the following is a disadvantage of using a rigid policy of fixed exchange rates?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd