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Q1. Assume the economy starts out at point A. After that, the public anticipates that the Fed will use expansionary monetary strategy to shift the AD curve from AD1 to AD2. Explain what happens; instead, is that the Fed does not raise aggregate demand as much as the public expects (bias upward). Instead the Fed pushes the AD curve from AD1 to AD3. As a result, according to new classical theory in the short run the economy moves to point
Q2. Bank A and Bank B both have assets of $1 billion. The return on assets for both banks is the same. Bank A has liabilities of $800 million while Bank B's liabilities are $900 million. In which bank would you prefer to hold on an equity stake?
Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.
A company's cash sales for the month are $200,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow.
What three factors determine whether two economies with separate fiscal and monetary authorities should form a currency union.
What is the relationship between marginal cost and marginal revenue when single-price monopoly maximize profit.
What is the unregulated competitive equilibrium. What is the unregulated monopoly equilibrium.
If the economy was working at full-employment equilibrium, illustrate the state of equilibrium after the fall in consumer confidence.
If it wants to accomplish this change in the money supply using open-market operations, what should it do.
How much will computers sales change by if the company increases computer price by $100 from $1,000 to $1,100.
With the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave unchanged.
there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
What is the opportunity cost of Josephine's trip to the wedding
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