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1. What are the two problems facing the Bank of Canada in trying to control the money supply precisely?
2. Using separate graphs, demonstrate what happens to money supply, money demand, the value of money and the price level if:
a. The Bank of Canada increases the money supply.
b. People decide to demand less money at each price level.
c. Banks decide to hold more excess reserves.
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
Compute total revenue, marginal revenue, total cost and profit at each quantity. What quantity would a profit-maximizing publisher choose? What price would it charge?
Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)
Suppose you are reviewing an isocost graph. The axis on the graph shows capital units on the vertical axis, and labor units on the horizontal axis.
Assume that Florida migrant workers are effectively unionized. What will be the impact of unionization on?
A tariff is simply a tax on imports. Use our model of the excise tax (with diagram) to describe why domestic firms request that tariffs be imposed.
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
Evaluate the range of marginal revenues
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
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