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How the Fed uses the Money Multiplier to fight inflation
Why do you think the Fed evaluates the money multiplier when making decisions with regard to the money supply? What function does the money supply serve in our economy to influence certain economic variables? Why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation?
Assume that Congress is considering imposing the 30% tariff on imported automobiles. Who would be the gainers and who would be the losers from such move?
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.
What government officials increase the price of parking ticket from $40 to $50; they are surprised that their revenue actually falls. What happened?
Compute the total cost of providing this insured service to the plan before and after the change in coverage.
By how much will each firm reduce its SO2 output? Which firm will buy permits, which firm will sell them, and how many permits will be exchanged?
Disscuss the contrasting views of the Keynesians and the monetarists with regard to an appropriate.
Article: Why you should worry about big oil. The oil industry is in the business of extracting and selling oil. It is the goal of the oil companies to do this as efficiently as possible.
Illustrate what effect a contractionary fiscal policy have on the price level and real GDP.
Elucidate the percentage rate of Full Employment and Inflation that that these two organizations try to keep as its target.
Bush proposed for government expenditures in the case of a recessionary gap? What is the effect of his policies on the federal government budget?
Consider a monopolist facing demand curve Q = 100 - P. MC=AC=$20. Find out the monopoly price, profits, and consumer surplus.
The percentage changes in quantity demanded divided by the percentage change in price.
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