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1. A goal of expansionary monetary policy is to:
a. decrease the rate of growth of real GDP.
b. increase the rate of growth of real GDP.
c. increase inflation.
d. none of the above
2. Lower interest rates are generally charged on more risky investments and on securities that have longer maturities.
True
False
3. The barter system requires the double coincidence of wants to be fulfilled.
Over which range of production, the marginal product of the variable input would be increasing in the short run.
Illustrate what would be a reasonable breakdown between private sector vs. public sector spending for an increment of $1. Are we talking $0.8 from private and $0.2 from public or would you suggest a bigger swing either way.
You can ask anyone the question. What would you rather have? Inflation? Or being unemployed? The resounding answer would be from everyone that they would rather be employed with a higher inflation than no job and a higher inflation rate.
Reflect on the changes in U.S. manufacturing over the last half century. Why did the United States lose so many jobs? What impact did that job loss have on the U.S. economy and on the economies of countries like China and Mexico that have been the re..
You plan to live in your house for 20 years, and your 20 year mortgage (principle and interest only) is $2,100/month. If you expect inflation to average 3% annually, what is your constant dollar mortgage payment on the day of your last payment?
Illustrate what fraction of the total variation in trades of Bright Side remains unexplained.
No one can predict a natural disaster or world crisis. When a hurricane or flood or a pandemic strikes a country, who is most likely to respond first? Which economic system is the best solution to handling a crisis of epic proportion?
When analyzing the housing market, the supply curve
A drought in Nova Scotia reduces the apple harvest, what happens to consumer surplus in the market for apples? What happens to consumer surplus in the market for apple juice? illustrate your answers with diagrams.
In the international marketplace, countries are categorized based on their stages of development. A marketer needs to be clear on these categories in order to determine the potential demand for its products/services.
Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli. Which tribe now has an absolute advantage in producing spaghetti? Which has the comparative ..
Profit Maximizing Rule: A firm maximizes profit by continuing to produce and sell output until Marginal Revenue (MR) = Marginal Cost (MC).
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