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Banks play an important role in the economy as regards to the money supply that is how to create money. Why do banks take actions that result in the creation of money and growth in the money supply?
You are an assistant to a senator who chairs an ad hoe committee on reforming taxes o telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs, Moreover, depending on the locale, te..
John bought a home after graduation and he is saving for the closing costs ($3000) and down payment. To avoid paying mortgage insurance and to get a better interest rate, he needs a down payment of 20%. He can afford a monthly payment of $700 based ..
If bond traders expect that an economy is sliding into recession, they ________ in anticipation of ________.
Keeping with this discussion, an understanding of market power and its impact on price and quantity are important. Market power is important in determining when a firm has monopoly power and when to enforce anti-trust policies. Why would a firm in a ..
Draw graphs showing a perfectly competitive firm and industry in long-run equilibrium. a. How do you know that the industry is in long run equilibrium? b. Suppose that there is an increase in demand for this product. Show and explain the short-run ad..
A tariff is a tax on imports. Use our model of the excise tax to explain why domestic firms ask their government to " protect" them with a tariff. Consider the winners and losers from the tariff. Why do economists tend to think that tariffs are a bad..
Suppose in Belgium the opportunity cost of producing a trombone is 8 clarinets. In Denmark the opportunity cost of producing a trombone is 6 clarinets. What is the opportunity cost of producing a clarinet for Denmark?
Consider an economy with the following production function: Assignment 3 Y = AK.5L.5 The labour force is constant. The rate of depreciation is δ = .1, the savings rate is s = .3. a. Has this production function constant returns to scale? Why?
During an outbreak of disease there is a test that can identify the disease early, saving $10,000 in treatment costs per case identified. This test identifies the disease 70% of the time in those infected and costs $500 per test. Another, more expens..
q.midcontinent plastics makes 80 fiberglass truck hoods every day for large truck manufacturers. each hood sells for
Kaylee wants to buy a machine shop on Beaumonde and someday retire from space flight. She purchases a contract to buy a little shop 10 years from today. At that time, it will be worth $40,000. What is the shop worth to Kaylee today? Kaylee has a disc..
In understanding the process of rapid transformation of economic systems in many nations in the world from the beginning of 1990s, briefly explain why freedom to choose the right theoretical foundations still do matter to develop an appropriate econo..
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