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1. If the reserve requirement is 20 percent, and banks keep no excess reserves, an increase in an initial inflow of $100 into the banking system will cause an increase in the money supply of:
?$50
?$20
?$100
?$500
2. ?Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model?
?No change in taxes or government spending
An increase in taxes
?A reduction in government spending
?An increase in government spending
As a result of the weakened dollar from the financial crisis,
q. a consulting firm estimates the demand by local businesses for attendance at a pro sports teams gamespb 140 - 4ab
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q.in the standard keynesian framework in open economy macroeconomics the supply is assumed to be perfectly elastic and
Why should a government be concerned with the pricing of products that a company transfers to an affiliate in another country? Please explain in terms of taxation and exchange rates.
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You are the marketing manager for Herman Miller, the company that sells the Leaf Personal Light in the US. The product was designed by Yves Behar, an entrepreneur and sustainability advocate. It is cool to the touch, has adjustable intensity and cons..
Explain in detail the concept of excess burden and explain the factors significant in the calculation of the excess burden. What is marginal excess burden and why is it important concept for policy evaluation?
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