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By increasing the money supply, the Federal Reserve can lower interest rates. This has a broad impact on the economy as mortgages, business loans, etc. can be obtained less expensively. Some economists believe that the money supply increases contributed to a housing bubble and the subsequent housing market crisis of 2008-09. They suggest that this event is an example of how the Fed can create recessions by artificially encouraging bad investment decisions, and that the same pattern can be seen in the tech stock bubble of the late 1990s and other recessions even as far back as the Great Depression. Evaluate this view of the cause of recessions. Do you agree or disagree? Why? Though your answer needs to be correct in terms of economic theory (be sure to read the assigned chapters), creativity and diverse opinions are strongly encouraged.
Explain why you used either the CPI data or the GDPD data in your answer to part A.
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The bank is willing to lend the business this money at a 10 percent interest rate over an eight-year term.calculate the monthly payment, and explain what the business must be able to do with this money.
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the small three-story brick building was slowly being dwarfed by the new gleaming white brick-and-glass office and
"Since consumers' tastes are changing so rapidly, there is no reason to expect that statistical demand estimates derived from historical data will be accurate in the future." Critically evaulate this statement in light of your knowledge of statist..
An end-of-sale price promotion changes the price elasticity of a good from -2 to -3. If the normal price is $10, what should the promotional price be?
select a product produced in the u.s. and a foreign country which you are familiar from the e-activity. determine if
Tariffs not only reduce the volume of imports, they also reduce the volume of exports
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