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Assume the entire economy contains $5000 worth of one-dollar bills.(a) If people fail to deposit any of the dollars, but instead hold all $5000 as currency, how large is the money supply?(b) If people deposit the entire $5000 worth of bills in banks that are required to observe a 100% reserve requirement, how large is the money supply?(c) If people deposit the entire $5000 worth of bills in banks that are required to observe a 20% reserve requirement, how large is the money supply?(d) In part (c), what portion of the money supply was created due to banks?(e) If people deposit the entire $5000 worth of bills in banks that are required to observe a 10% reserve requirement, how large could the money supply become?
Illustrate what would be the consumer purchasing response to Coca-Cola if the price of Pepsi doubled.
Assume the government imposes a fixed tax t per unit quantity on each firm. Explain the impact of this tax on following variables;
The dividend is hopefuly to make at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?a) $2.20.
Explain is contracting a government service out to some private firm the best way. Does it make economic sense to contract out some government services.
Comparing which is the current quote has the Japanese dollar appreciated or depreciated.
Suppose that the town of Grayrock had a population of 10,000 in 1998 and a population of 12, 000 in 2003.
Elucidate the difference between GDP and GNP. What adjustments needs to be made to GDP to arrive at GNP.
The impact of changing from a federal income tax to a federal consumption tax would be:
Describe the creation of money from excess reserves and multiple deposit expansion in banking system. How does the multiplier affect the supply of money?
Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. Illustrtae what is the growth rate of its real GDP.
Suppose that Melanie had 200000 of disposable income and spent 180,000 on consumption in 2006 & had 300,000 of disposable income & spent 240,000 on consumption in 2007
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