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Assuming a bank only keeps enough of its reserves to meet its reserve requirement, how much money is created when the Federal Reserve purchases $80,000 worth of bonds from a bank (this means they deposit $80,000 in that bank's reserve account) and there is a 25% reserve requirement?
What three factors determine whether two economies with separate fiscal and monetary authorities should form a currency union.
A firm believes the sales volume (S) of its product depends on its unit selling price (P) and can be determined from the equation P = $100 - S. The cost (C) of producing the product is $1000 + l0S.
In your opinion, does the Houston Medical Center, in which many hospitals gather, represent an example of perfect competition, monopolistic competition, collusive oligopoly.
Which pizza-baking oven would you select and why? State any important assumptions you make in your analysis.
How changing the price elasticity of demand from elastic to inelastic affects the consumer's economic burden of a tax and the government's collected tax revenues?
The owner of a corner lot wants to find a use that will yield a desireable return on his investment. If the owner wants a minimum attractive rate of return on his investment of 15%, which of the two alternatives would you recommend?
Determine the most Magna should be willing to pay to lease the land for the expected life of the project and calculate the profit under each possible demand curve with the optimum size of the shopping center.
Explain how a Central Bank (e.g. the US Federal Reserve Bank, or "Fed") functions in order to: a) control the monetary base ("Hint": the amount of high-powered money); and b) through this control
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed. What are the different price points.
Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop commu..
The demand curve for higher education in Tallahassee is P=120-2Q. Assume the only two colleges in town are FSU and FAMU. Each university faces the cost function TC=6Q. Both colleges get together and successfully collude to fix price at a profit maxim..
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
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