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The Federal Reserve System [Fed] has a huge measure of political independence. The Board of Governors, appointed through the United States president and confirms by the United States Senate, serve fourteen year terms. In addition, the Federal Open Market Committee includes representatives of private banks in the Federal Reserve System.What are the best targets for the Fed? Should it lean toward restraint or toward expansion? Why?
Elucidate why the Fed must normally add reserves to the banking system via open market operations on most days in order to maintain its interest rate target in the Fed Funds market.
Consumption of apples drops from 30 pounds of apples a month to 21 pounds of apples.
Explain how might we interpret this statement in terms of cost curves and revenue curves.
Why the price of computers dropped as their power and features has have increased?
A nation has a lower inflation rate than all other nations, It has more rapid economic growth.
Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table:
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
Indicate whether each of the following statements is true, false, or uncertain, and explain your answer.
Describe the effects a 15 percent price increase would have on the demand for the product.
What is the main policy message of the AS-AD model, and how does it relate to the 1930s Keynesian revolution in economic theory? What should today's policy-makers assume about the natural rate of unemployment?
60% of the youth between 18 and 30 in Detroit are unemployed, have not completed high school, are at various levels of functional illiteracy, without job skills,
Price benefit analysis of an irrigation project describes the ratio of the discounted current value of benefits to costs is less than one.
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