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Q. The Federal Reserve expands the money supply by 5%
a. Use the theory of liquidity preference to illustrate the impact of this policy on the interest rate.
b. Use the model of aggregate demand and aggregate supple to illustrate the impact of this change in the interest rate on output and the cost level in the short run.
c. When the economy makes the transition from its short run equilibrium to its long run equilibrium, Illustrate what will happen to the cost level?
d. Explain how will this change in the cost level affect the demand for money and the equilibrium interest rate?
e. Is this analysis consistent with the proposition which money has real effects in the short run but is neutral in the long run?
Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright.
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Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend
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Fully evaluate these regression results, including computation of t-statistics, adjusted R2, and the F-statistic.
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
Two dry cleaners are located on a street of length. The firms do not make the same profit, verbally describe why this is the case.
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operating deficit is asking should the transportation authority increase or decrease the price per ride based upon the price elasticity of demand.
The manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months
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