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In a recent year, a bank earned $12 million in interest on its assets of $177 million, it paid out $8 million in interest on its liabilities (excluding capital) of $172 million, and it paid its workers $3 million in total compensation. The bank's spread is
If the Fed shifts to a more expansionary monetary policy, it will generally buy Treasury bonds in the open market. The federal funds rate. (The inter-bank interest rate). The
General Electric paid its line workers $12 per hour last year when the Consumer Price Index was 100. Suppose over the past year that deflation occurred and the aggregate price
determine total project completion time and critical path for installing electrical wiring and equipment in residential houses. In addition, determine ES, EF, LS, LF and sla
According to the production possibilities model, does a reduction in the unemployment rate cause the economy to grow (yes or no)? Explain why or why not. What about Improvemen
Consider the economy of Arcadia. The households of Arcadia spend 90% of their income. There are no taxes and no foreign trade. The currency of Arcadia is called “Arcs”. The le
Do you think that the developing countries should be given special, favorable treatment in multilateral trade negotiations? Why or why not? Has such treatment been given to de
What are some of the factors which affect the demand for goods and services? What happens to the demand for a good when each of these factors decreases? The market for hotdogs
From 1970 to 1983, corporations expanded impressively in number, receipts, and assets. In numbers and receipts, at least, the picture is dominated by firms with assets no more
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