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What is the money demand function in the classical model(in math)? Explain in words which factors affect money demand and in which direction. What is the liquidity preference function(in math)? Again, explain in words which factors affect money demand and in which direction. How would a keynesian respond to the classical claim that nominal income is determined primarily by movements in the quantity of money?
)TLC Lawn Care, Inc. provides fertilizer and weed control services to residential customers. Its seasonal services package, regularly priced at $250, includes several chemical spray treatments. As part of an effort to expand its customer base, TLC..
For each of the following scenarios, determine whether the decision maker is risk neutral, risk averse, or risk loving. a. A manager prefers a 10 percent chance of receiving $1,000 and a 90 percent chance of receiving $100 to receiving $190 for sur..
According to the following economic indicators, estimate the outlook of this fictitious economy. Although I know what these indicators mean,
What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output Q1 level is being produced How large is the dollar value of the consumer surplus at that output Q1 level
The attendance at baseball games at a certain stadium is normally distributed, with a mean of 44,000 and a standard deviation of 2500. For any given game: a) What is the probability that attendance is greater than 46,000 b) What is the probability ..
Consider the market for ice cream as in the previous problem. This has a demand curve given by D(P)=100-P and a supply curve given by S(P)=1+98P. If the government implements a $9 tax, what is the price that consumers will pay
Given the information below what are the optimal markups for widgets and gadgets Marginal revenue = Price(1 + 1/Price elasticity) since price is positive (always) so we can ignore that part when determining the sign of MR MR is negative if 1+1/elasti..
The cost of capturing and storing all CO2 produced by coal-fired electricity generating plants during the next 200 years has been estimated to be $1.8 trillion. At an interest rate of 10% per year compounded monthly
The demand curve for the new computer game, Rock and Roll Trivia, is given as follows Q= 200 - 5P - .1Pc - .5Pd + .2A -I
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's.
Blair has decided to manufacture the sub assemblies within the company and must now consider whether to rent one centerly located facility or to rent three separate facilities, each located near one of the assembly plants, where each facility woul..
Given the following demand curve Q=100 - 2P determine the price elasticity of demand at the following prices. 1. P = 10, Elasticity = 2. P = 30 Elasticity = ?
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