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Suppose that you deposit $15,000 into your checking account deposit at Bank Y. Assume that the required reserve ratio is 25 percent.
a. what is the maximum increase in checking account deposits that can result from your $15,000 deposit?
b. What is the maximum increase in the money supply?
The US government could not pass its annual budget. As a result, the US government has partially shut-down: roughly about 800000 federal employees of non-essential services are out of work
Should the Federal Reserve System control the nation's money supply? Defend your position using economic principles.
Suppose that the government wants to raise investment but keep output constant. In the IS–LM model, what mix of monetary and fiscal policy will achieve this goal? In the early 1980s, the U.S. government cut taxes and ran a budget deficit while the Fe..
the abc co. is considering a new consumer product. they believe there is a probability of 0.4 that the xyz co. will
A firm sells a product in a purely competitive market. Illustrate what would the price of wheat be in the absence of trade.
Explain by how much did real GDP increase between 2002 and 2003. Velocity in the country of Shem is always stable.
Explain why temporary and permanent fiscal expansions do not have different effects under fixed exchange rates, as they do under floating exchange rates.
For each of Marshall’s four rules of derived labor demand, come up with one example of an industry or job that you would expect to have especially elastic or inelastic labor demand based on that particular rule.
An economy adjusts on its own to close a recessionary gap because there is
A paper company dumps non-degradable waste into a river that flows by the firm's plant. The firm estimates its production function to be: Q = 6KW, where Q = annual paper production measured in pounds, K = machine hours of capital, and W = gallons of ..
Calculate the CRF for an incremental tax of 40%, a depreciation life of 20 years, a depreciation schedule that is straight line over the same 20 years and a 15% after tax rate of return.
Suppose nominal GDP rose from 6250 billion in 1995 to 6630 billion in 1996. If the GDP deflator rose from 125 to 130 during this time, what was the percent growth in real GDP? Given the data in part (a), what was the rate of inflation for goods and s..
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