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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.
If my income increases by 10%, then quantity of public transportation demanded drops by 5%. I can say that income elasticity of my demand for public transportation is negative and that public transportation is a normal good. If the demand for chee..
What is the difference between a traditional monopoly and a natural monopoly. Include the following points Identify the incentives to produce and price the product for a traditional monopoly and natural monopoly.
An economy can be stimulated by printing more money. Illustrate what are the dangers of doing that. Inflation can be decreased by reducing the money supply.
A) Derive the equation for the IS curve, Y=k*Ap. GRaph for interest rates 0 & 8, with intervals of one-half of a percentage point. B) Suppose the equation for th LM curve is Y=13500+100r. Use this equation to explain the level of income at which t..
A houseowners son has agreed to invest some money in materials for remodeling of his parents kitchen, if he can decorate kitchen and the cabinets in vinyl he likes.
If the Federal Government is giving more than it receives in tax revenues in an effort to reduce unemployment
A company in a perfectly competitive industry has invented and patented new process for making a plastic product q. The new process lowers the company's average cost curve,
tuition is s= 60,000; he can earn w= $10K as a part-time waiter in college; the interest rate is r= 10%; and he anticipates earning w= $144K after he graduates. If, instead, he does not enroll in college, then he will earn wn= $45K per annum duri..
In his semi yearly testimony to the Senate banking committee past summer Alan Greenspan commented on the recent Fed funds rate hike in late June 2004;
The table below shows the marginal utility a costumer would get by purchasing various quantities-What combination of the three products should be purchased in order to maximize utility?
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:
Due to the slow down economy, it is expected that there will be .7 million additional workers who will lose their jobs next month. Determine the expected unemployment rate for next month?
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