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Suppose the Federal Reserve announces that it is lowering its target interest rate by 75 basis points, or 0.75%. It would achieve this by (decreasing/increasing) the (money supply/money demand)
The sequence of events that results in a new equilbruim interest rate, adter the Fed makes the change you selected, may be dicribed as follows: Becasue there is (more / less) money in the financial system, the quantity of interest-bearing financial assets (such as bonds) demanded (increases/decreses), which means that bond issuers (can issue bonds at lower interest rates and still / must raise the interest rate they pay to ) sell bonds. This process continues until the new equilibrium interest rate is achieved.
What is consumer surplus, and how is it measured? What is the relationship between the denmand curve and the willingness to pay?
q. suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs
Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person. Which country can benefit?
Think about the demand for the three popular game consoles: XBox, PS3, and Wii. In each of the scenarios below, briefly describe the effect on (a) the demand for XBox games and (b) the quantity of XBox games demanded
Draw diagram in each case and explain answer: 1) the economy experiences a period of rapid growth, with rising corporate profits 2) The federal government imposes a tax of $10 per bond on bond sales and bond purchases.
Amy and Kevin Hall each had an authorized credit card with both of their names on it. Amy and Kevin separated. Kevin called the credit card company and asked that to have the credit card cut off to Amy. The company said that Kevin must return Amy’s c..
Explain how your own current household budget, tastes and preferences, and future expectations determine how much of each of these products you purchase in a year. Describe the benefits (utility) you get from each product and service. Suppose the pri..
Suppose that Charles, an economist from an AM talk radio program, and Dina, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Consider a low wage labor market. Workers in this market are not presently covered by the minimum wage, but the government is considering implementing such legislation. If implemented, this law would require employers in the market to pay workers a $..
Describe the difference between the short run and long run in the example to bringing about more tables for the customers. How is the restaurant able to differentiate between the short run and long run?
Home price escalation in the U.S. during 2005 fuelled booms in:
Why are costs important in economics? Why don’t economists use the same cost data as accountants use? What is the real cost of putting an unemployed laborer to work raking leaves or digging holes and refilling them during a severe recession? Explain.
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