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Moral hazard
Suppose the Sri Lanka government awarded contracts to private companies to rebuild the countryâ? Is infrastructure damaged by the tsunami and it based its contracts on a percentage of the cost of the reconstruction. Would this constitute a moral hazard? If so, what would the government need to do to prevent such a problem?
A firm uses a single plant with costs C = 160 + 16Q + .1Q 2 and faces the price equation-Find the firms profit maximizing price and quantity. What is its profit?
Find the overall change in the economy's money supply if, when the reserve ratio is 5%, the Federal Reserve System buys $250 million of US government bonds from the banking system. What would have been the change if several billionaires deposited ..
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
Compare and contrast the strengths and weaknesses of today's Federal Reserve operating procedures and monetary decision making policy.
Whenever a beer company rise its advertising budget 18 percent, the demand for its beer increased 28 percent. What is the advertising elasticity for the company's product.
Illustrate what is the present rate of unemployment and the current rate of inflation
Explain why is a risk analysis so important. In your opinion, which among the factors of the risk analysis carry more weight than others?
In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
What was the growth rate of nominal GDP between 1999 and 2000? (Note the growth rate is the percentage change from one period to the next).
Estimate the linear trend in the data, and use it to forecast gasoline sales in the United States in each quarter of 1990.
Starting with the reaction functions of duopolists Cournot solution algebraically.
Given the Demand curve for flyswatters Q = 500-50P, estimate the quantity demanded for the following prices.
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