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Refer to Monetary Policy for the following questions:
1) If the banking system has a required reserve ratio of 10%, then the money multiplier is: _______________
2) If Bank A receives a $10,000 deposit and the reserve requirement is 10%, how much does Bank A have available to loan out? __________
3) If Bank One receives a $10,000 deposit and the reserve requirement is 10%, by how much can the money supply be increased by the banking system: _____________________
According to economists, what is (are) the true cost(s) of a budget deficit? Does the "opening up" of an economy change the type of costs a deficit produces? Use an investment/savings diagram in your answer.
The state government collected all taxes due, but its tax revenues were equal to $40 million each year. What happened to the sales tax base between 2006 and 2007? What could account for this result?
The impact on this monetary aggregate of extensive monetary aggregate of extensive financial innovation - the changes in the kinds of deposits and services offered by banks- led the central bank to drop M1 as an intermediate target. What impact would..
Assuming other countries do not change their own trade policies, what would be the impact on the value of the dollar relative to other currencies? What would be the effect on the jobs in U.S. industries?
Use an isocost-isoquant diagram to explain how a rm determines the least cost combination of labor and capital to produce a given level of output. What is true of the marginal product per dollar at the least cost combination of capital and labor? Why..
Illustrate what money supply should the Bank of Canada set next year if it wants inflation of 10 percent.
You want to study the effect of education on earnings (yit = earnings). You have panel data on annual earnings for many workers. You think earnings will depend on age, education, and union status and you run that regression.
q.the following graph shows the demand as well as curve d of a home country facing the foreign monopoly supplier of a
Which of the following groups are likely to have the highest tax elasticity of labor supply: a) college students, b) single parents, c) primary earners in two-parent families, d) secondary earners in two-parent families, or e) retired people with ave..
If you know that the marginal utility per dollar spent on product Alpha is less than the marginal utility per dollar spent on product Beta, consumers who spend all their income on these two products can:
What is the process by which a recessionary gap closes itself? Explain. Why might this self-correcting mechanism work slowly in the face of a recessionary gap?
You are an efficiency expert hired by a manufacturing firm that uses K and E as inputs. The production function for a competitive firm is Q = K1/2 E1/2. The firm sells its output at a price of $32, and can hire labor at a wage of $12.44 per hour. In ..
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