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You take $1000 you had kept under your mattress and deposit it in your bank account. If this $1000 stays in the banking system as reserves and if banks hold reserves equal to 20 percent of deposits, by how much does the total amount of deposits in the banking system and money supply increase? If the required ratio is 10% now, does the money supply increase more or less? Explain your answers.
Why might leasing a new Porsche be good investment for an aspiring Hollywood film producer, even though, he can't easily afford the monthly payments.
Explain why do national income accountants compare the marker value of the total outputs in various years rather than actual physical volumes of production.
shutdown point case average variable cost market price lt average total costnbspif the market price in the above
Elucidate whether each of the following events shifts the short-run aggregate-supply curve, teh aggregate-demand curve, both, or neither.
Why might federal spending on roads, waterways, or national security be less subject to direct expenditure offsets than spending on health care or education?
John Smith expected income in period two is unchanged. Illustrate graphically explain how this job loss affects John's consumption in periods one and two.
A single-price monopolist sets price?
which of following is a characteristic of a binomial experiment. A. at least 2 outcomes are possible b. probability changes from trial to trial c. trials are independent d. None of these alternatives is correct.
Assume that all other banks hold only the required amount of reserves.
Suppose the store manager observes that the quantity demanded increases from 700 CD players to 1,300 CD players. Illustrate what is the price elasticity of demand for CD players.
Discuss five non-bank financial intermediaries in the American economy,relate what each one does and how it gets money.
what will happen to the value of the dollar? Use the demand-supply model of the dollar to explain. sales of luxury cars will decrease.
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