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Assets: Reserve :1200
Securities
750
Loans 3500
Properties 550
Liabilities and net worth
Check able deposits 5000
Stock shares 1000
If the balance sheet above was for the commerical bank system, rather than one bank, by how much could the supply of money increase?
Discuss some of the problems associated with hyperinflation--use the first article to provide examples of the problems with inflation
Suppose that a less developed country known as LDC encourages direct foreign investment
Write down the effect on the real wage and hours worked in the short run.
Define the union wage gain and the union wage gap. Why should we care about the magnitude of the union wage gain? Why should we care about the magnitude of the union wage gap? Under what conditions will the union wage gap provide a reasonable est..
Elucidate whether each of the subsiquent would make fiscal policy more effective or less effective
Write a brief note summarizing the evidence in your graphs for and against deficits causing high real interest rates
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
Suppose there are 7 firms in the candy industry with the market shares shown below. What is the HHI for the industry? When a monopolistically competitive firm's demand curve shifts leftward, what happens to its marginal revenue curve?
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level.
Make a separate diagram to show the answer, and describe what happens to equilibrium price and sales, explaining why or why not this makes sense in the real world
Assume labor's share of GDP is 70% and capital's is 30%, real GDP is growing at a rate of 4 percent a year, the labor force is growing at 2 percent, and the capital stock is growing at 3%.
Can the U.S. ever come out ahead from this quota? Why or why not? Can the ROW ever come out ahead? Why or why not?
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