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Q. Suppose a country the total holdings of banks were as follows:
Required reserves = $45 millionExcess reserves = $15 millionDeposits = $750 millionLoans = $600 millionTreasury bonds = $90 million
Show that the balance sheet balances if these are the only assets and liabilities.
Assuming that people hold no currency, what happens to each of these values if the central bank changes the reserve requirement ratio to 3%, banks still want to hold the same percentage of excess reserves, and banks don't change their holdings of Treasury bonds? How much does the money supply change by?
Accepting that individuals hold no cash, what happens to each of these qualities if the national bank changes the save necessity proportion to 3%, banks still need to hold a similar rate of overabundance saves, and banks don't change their property of Treasury securities? What amount does the cash supply change by?
Write down an expression for the profit GBC will make if it uses L units of labor at $1 an hour and sells the resulting output of cookies at $p a cookie.
State two economic principles of taxation and which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads.
A firm with a U-shaped average cost curve finds that its costs exceed its revenues when it sets price equal to marginal cost.
Considering that the beekeeper gets that amount, what range of payments will the farmer admit.
Calculation of the unemployment rate and part time workers who would prefer to work full time.
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
Describe how each of these activities affects government households as well as businesses.
How could a company go about meeting those needs and thus motivate you to work better and harder.
Describe how each of these activities affects government, households, and businesses. Illustrate flow of capital starting from one entity to another for each activity.
Consider what you have learned about the root causes, as identified by leading economic thinkers and policymakers.
The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour.
Describe the determinants of varying levels of income. What factors determine a wages of a person
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