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Q1. Why I having a nominal anchor important for you to achieve inflation targets ? What is the drawback of using a nominal anchor? What is the growth rate of the money supply of this economy? If you chose to adapt a money supply target, which money supply growth rate will allow you to meet your inflation target?
Q2. The following are the examples of typical economic decisions made by the managers of a firm. Determine and explain which basic economic problem: of what, how and for who apply to the following the economic decision. Should the company makes its own spare parts or buy them from an outside vendor?
Calculate gross national product and net national product
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
China has continued to lag well behind the rest of the world in information technologies
Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States.
Compare the competitive price charged and quantity produced under perfect competition and monopoly. Other than identifying the presence of only one producer under monopoly, why do we tend to see this differential.
Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.
Describe the Schumpeterian notion of "creative destruction"
The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.
Sketch the extensive form of the game, carefully labelling the players that move and the actions they have available
Describe the difference between Economic contraction and Economic expansion
How many popsicles will be sold/supplied each day in the short run if the price rises to $4 each per day
It comes to global expansion and setting up affiliates aboard, how is a service company's focus different from that of a manufacturing company
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