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When banks hold excess reserves, they: a) increase the amount of loans to the public b) reduce the actual money multiplier c) increase the money supply d) increase the reserve requirement
Which of the following is most important in increasing a nation's economic growth in the long run?
Compute the elasticity of trades with respect to every inconsistent in the demand function.
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,738 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a use..
Give an example of behavior that cannot be explained with standard economic models, and which is therefore of interest to behavioral economists. Be sure to identify (i) which standard economic assumption is violated and (ii) how do behavioral economi..
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as whole numbers. What is i..
Your demand for minutes of calling is given by the equation: Q_d = 150-50*P, where P is the price of a minute. illustrate what is the cost of an extra minute on the phone.
Consider a bond that has a present value of $1,000. If the annual rate of interest is 7 percent, the future value of the bond after a year is
A parent has a pile of toys to divide between two children. Assume that there is an even number of each toy. What method of dividing the toys ensures that the final division is efficient? Divide the pile arbitrarily, and then let the children trade t..
The natural rate of unemployment is also the steady-state unemployment rate, the unemployment rate toward which the economy moves. Once the economy reaches this steady state, the unemployment rate tends to remain the same. What is the current unemp..
The Heckscher-Ohlin model is about how factor abundance/scarcity affects trade. Consider factors such as capital, skilled labor and unskilled labor. It is usually held that developed countries are relatively abundant in capital and skilled labor, and..
A market is characterized by a demand curve that can be expressed as P = 3000 – 10 Q. Each of the two identical firms currently serving the market has a total cost function of the form C = 250 q. find the profits for each of the firms when one of the..
When there are economies of scope between products, selling off an unprofitable subsidiary could lead to
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