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If the central bank wants to expand aggregate demand, it can ________ the money supply, which would ________ the interest rate.
increase, increase
increase, decrease
decrease, increase
decrease, decrease
Suppose the fisher hypothesis holds for an economy that has an expected real interest rate of 2 percent. For each of the expected inflation rates of 0,2,4,6, and 8 percent, calculate the nominal interest rate and the after tax expected real intere..
Is the concept of “serving the poor” really an attractive business opportunity? How does business leadership drive companies such as Nokia to pursue such an opportunity?
If Projects B and G are mutually exclusive, explain how would that affect your overall answers. That is, which projects would you accept in spending the $80,000.
Discuss some of the reasons why individuals routinely over-estimate the time for project activities. How is this behavior detrimental to the schedule and project?
compute the average cost function for skateboards. what shape does the graph of this function have. What is the average at this level of output.
Elucidate how much labor should the firm employ. What is the resulting output and profit.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
What is the equilibrium after aggregate supply changed? If potential GDP is $1 trillion, does the economy have an inflationary gap, a recessionary gap, or no output gap?
Explain why does price equal marginal revenue for the purely competitive firm. what is the relationship to the demand curve for the firm.
The demand for milk is more elastic than the demand for water. Suppose the government levies an equivalent tax on milk and water. W hy he deadweight loss would be larger in the market for which item.
Assume you have 5 uneven payments to make and you want to know what you will be paying at 10% per payment (year) on this uneven payment.
find the current set of reserve requirements that banks must meet. Then calculate the reserve requirements for banks with the following amounts of transactions deposits.
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