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Suppose that Second Republic Bank currently has $150,000 in checkable deposits and $97,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Using these values, fill in the empty cells for reserves, required reserves, and excess reserves in the following table.
Each person would pay taxes equal to 10 percent of the value of his or her car. Would the tax be proportional, progressive or, regressive What assumptions do you make in answering this question Do you think the tax that was imposed either efficien..
Macro-economics is perhaps most divisive area of economics. Macro economists divide themselves into different schools of thought. Two of the biggest camps are the Keynesians and the Monetarists.
If the government announced the economy is headed into an expansionary period of rising real GDP and prices, businesses would most likely respond.
A rural utility company provides standby power to pumping stations using diesel-powered generators. An alternative has arisen whereby the utility could use natural gas to power the generators, but it will be a few years before the gas is available..
Mention four key points from the reading assignments that were emphasized in the simulation. Find out how price elasticity of demand affects the decision making of the consumer and of the organization.
In trade negotiations with the Japanese over the large US trade deficit with Japan, the US administration has urged the Japanese government to undertake a more expansionary fiscal policy. Explain how this might affect the US trade deficit with Jap..
Disclose what the book suggests once the short-term rate is much cheaper than the long-term in interest rate. Substantiate whether or not that is a normal occurrence or a cause for alarm.
Suppose countries A and B each have 1000 units of Labor available. Countries A and B can produce two goods, steel and TVs, using the following labor coefficients (labor requirements) per unit of output produced:
Explain. Problems and Applications a. Dutch pension funds holding U.S. government bonds b. U.S. manufacturing industries c. Australian tourists planning a trip to the United States d. an American firm trying to purchase property overseas
Suppose a new technology is developed that increases investment demand in both a closed economy and in a small open economy that are in other ways identical. Holding other factors constant, will the quantity of investment spending increase more
What is the difference between fiscal retrenchment and fiscal consolidations, especially in their actions and effect? Or if the two policies are different, what actions would be taken respectively?
The United States is best described as having a "mixed economy". What are some elements of capitalist in the US economy? command elements in our economy? and some elements of tradition?
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