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Financial crises happen in various parts of the world. There have been many to which you can reference. Discuss the impact of financial crisis in Europe during the 2010 timeframe. What happened to bring about this crisis? What lessons can be learned from the hardships of this time? What other insights can be taken from this period? Most importantly, how can we avoid similar problems in the future?
Suppose that the monetary base increases by $400 billion. If the money multiplier equals 2.75, the money supplies:
The US government decides to reduce the government budget deficit by increasing taxes and keeping government expenditures at the existing level. What are the effects of increasing taxes in the short and medium run for the US economy?
The Federal Reserve took money out of the banking system to raise the federal funds rate-the rate at which banks lend each other money overnight-from 4 percent to 4.5 percent. How does the Fed take money out of the banking system? Explain how doing s..
How does the labor-leisure trade-off determine the supply of labor? the supply of labor is no different than the supply of any other good or service in that it is primarily affected by productions costs. In the case of labor, the dominant production..
Supply and Demand in the U.S. Car Market. Please include a graph showing the initial equilibrium and the new equilibrium with the corresponding price and quantity and an explanation to support your answer. As the price of gas increases, what happens ..
A presidential candidate has decided to enter primaries in those states in which at least 20% of voters support her. Random samples of 200 voters were taken in each of a number of states. In New Hampshire, 33 voters supported the candidate. Test at a..
A risk neutral monopoly must set output before it knows for sure the market price. There is a 50% chance the firm’s demand curve will be P=20-Q and there is a 50% chance it will be P=40-Q. The marginal cost of the firm is MC=Q. The expected profit-ma..
Identify changes in market conditions and their effect on equilibrium price and quantity for the following events:
How is it possible for some people to pay "negative" taxes? Why is it important to distinguish between deficits and debt? Why may a budget surplus be considered undesirable?
Explain when a firm should bring its supply chain in-house. Explain when a firm should let its supply chain remain external.
Standing for "free soil" and "free labor," the Republican Party was able to appeal to northern farmers and native-born workers, but at the price of alienating many northern manufacturers. Is this True or False?
Selling stocks. Suppose you have two stocks A and B. One falls in price and or increases. If you only care about rates of return, which one should you sell?
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