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What is one significant consequence of fractional reserve banking? Banks are vulnerable to "panics" or "bank runs." Banks can only lend an amount equal to its deposits. Banks hold a portion of their deposits in gold. Banks can serve the withdrawals of all their depositors.
Explain why does the magnitude of price elasticity differ in a and b above, although the same set of price-quantity combinations are used to compute the price elasticity of demand
Suppose a friend you know requires a mortgage loan to purchase a house. Your friend can purchase it now or wait until later and is unsure of what to do.
Illustrate why do economists pay more attention to national economies than state or regional economies.
In the market for flash memory drives ( a normal good), exlpaing whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded.
suppose that in a given period, 9% of the unemployed people will find jobs and 3% of employed people will lose their jobs. In the U.S, unemployment is at 8.1%, 1% of employed people will lose their job, and 19% of unemployed will find jobs.
At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$.
Illustrate the impact do natural resources have on economic growth. Will it be possible for a country with few natural resources to grow rapidly.
Mitchell Electronics produces a home video game that has become very popular with children. If the threat is not credible, what changes in the game would be necessary to make the threat credible.
Let's watch a bank create money. Last Wednesday, the Bank of Numenor opened for business. The first customer, Edith, walked in the door with 100 silver coins called Thalers to deposit in a new checking account. The second customer, Max, walks in t..
Provide an economic profile of the Airline industry. Include an industry profile, Industry size data and current developments and trends within the industry.
Make sure to discuss how Facebook has both impacted and been impacted by the technological and other changes that comprise a low-friction economy as well as in terms of supply and demand.
Describe the impact of globalization on the firm. Are there any effects on its cost structure, markets, currency risk, and overall strategy.
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