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Think of the market for loanable funds. A policy that induces people to save more or that reduces the governmet's budget deficit (moves it more toward a surplus) shifts
A: the supply of loanable funds and raises interest rates.
B: the supply of loanable funds and reduces interest rates.
C: the demand for loanable funds and raises interest rates.
D: the demand for loanable funds and reduces interest rates.
The market for hairbrushes is perfectly competitive. Suppose that the new fashions for hair are "buzz cutt" and long and uncimbed. Tell how the market and a typical firm respond in the short and long run to these developments. Use market/firm model a..
In the core of cooperative games, the total cost of forming a coalition is shared by all members in a coalition (efficiency). what is the solution concept that only requires stability and does not carry the notion of efficiency?
A used car dealer purchased my 1992 Ford Tempo for $1,000. He paid a worker $200 to wash it. He purchased four tires for a total of $400 to replace the existing tires on the car. He sold the car for $4,000. All these economic activities took place in..
If the marginal revenue from a product is $15 and the price elasticity of demand is ? what is the price of the product?
Country described by the one-country model in section Suppose that the country temporarily raises its levels of γA. Draw graphs showing how the time paths
How could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this? Without this information, how would you make a decision?
Before output has had time to adjust, by how much is disposable income reduced. Compute the resulting change in consumption expenditure.
Chimnesia has two equally sized groups of people: smokers and nonsmokers. Both types of people have utility U = ln(C), where C is the amount of consumption that people have in any period. So long as they are healthy, individuals will consume their en..
Movie theaters often charge different ticket prices for different times of shows; so is the movie theatre a monopoly that practices discrimination? What about the concession stand inside the theater?
Assume that a consumer has the utility function U(x,y) = 3x+y, where x and y represent the quantities of two goods, X and Y. The consumer has I=$60 to spend on the two goods, and good Y costs py=$2 per unit. The price of good x, px, is also exogenous..
The federal reserve has power to adjust the nominal federal funds rate of interest. How do they do this? How is this different from quantitative easing? How does affecting the nominal federal funds interest rate address recessionary gaps in the econo..
q. you read in a business magazine that computer firms are reaping high profits. assume that the computer market is
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