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What is the proposed name for the central bank in the Aldrich Plan?
Which president signed the legislation establishing the Federal Reserve System?
What was the law that established the National Monetary Commission?
Tad’s bait shop has a monopoly in the bait market at Sanderson’s Lake. Demand for bait is given by Q = 56 – 8P. Tad’s marginal cost function is MC = 0.25Q. Find Tad’s optimal choice of output and price. Find the level of consumer surplus that accompa..
Elucidate the price also quantity that maximizes the company's profit.
Describe the functions of money and consider the U.S. dollar as an example. Although the U.S. dollar has little or no intrinsic value, why do people want it so much? Can you think of other example of things that act as money in our society?
Assume you have an asset which will pay 5,000 dollars at the end of each year forever. Then, if the interest rate is 5% per year, the value of the asset is
New safety regulations increase manufacturers’ costs of producing insulation. What happens in the market for insulation as a result?
If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
Suppose the price and quantity equilibrium is below the price and quantity which maximizes total revenue, what strategy would you use for the firm. Assume that the demand curve is downward sloping.
To get a loan from the federal reserve, a bank can: Which of the following economies did not experience a financial crisis in the last twenty years. In 2007-2008, the Fed deviated from the Taylor rule because as inflation rose over that period, the F..
Suppose for every dollar change in household wealth, consumption expenditures change by $0.05. If real household wealth declines by $45 billion, potential GDP is $120 billion, and the multiplier effect for the first year after an expenditure shock is..
Increase or decrease in the money supply increase the price level to the tolerable range
Clearvoice is a wireless telephone monopolist in a rural area that serves 100 high-demand consumers, each of which has the following monthly demand curve for minutes of wireless service QHd = 100 − 100P, Which of the following per minute prices in th..
An economy has the following Money demand function: (M/P)d= .4Y/i^.5 . Where i is the nominal interest rate. Calculate velocity if the nominal interest rate is 4 percent. Calculate the new velocity of money.
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