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Explain what the reserve ratio is and provide an example demonstrating its effect on lending in the banking sector. (3 marks) b) With reference to question 6a) explain the concept of the money multiplier.
Assuming you have a capital budgeting problem with 6 investment options, what is the maximum number of investment combinations you would have to test? Calculate. Show work
A used car dealer purchased my 1992 Ford Tempo for $1,000. He paid a worker $200 to wash it. He purchased four tires for a total of $400 to replace the existing tires on the car. He sold the car for $4,000. All these economic activities took place in..
When we attend a film, in a way there is not the same kind of "suspension of disbelief" as there is with theater. Rather we demand more "realism" be portrayed in the film. Yet in a way we are suspending disbelief just as much, just changing its fo..
Suppose now the price of a cell phone minute falls to $.50 per minute. Show how this will change the budget line.
Moving along a demand curve, the quantity demanded decreases 8 percent when price increases 10 percent. Find the arc price elasticity of demand over the price range from $3 to $7. Interpret the value of price elasticity.
Suppose that an economy in year t can be described by the following three equations: What is the natural rate of unemployment for this economy in year t? Suppose that in year t-1 and year t the unemployment rate is equal to the natural rate and that ..
A provider charges $200 for an office visit. The insurer's allowed fee is 80% of charges. The beneficiaries pay 20% of the allowed fee. In this case, how much would the insurer pay? How much would the patient need to cover?
Let’s look at the issue of company culture and customer loyalty. What are some ways an organization’s culture can impact customer loyalty?
Why would one be unable to associate particular amounts of calendar time with the concepts of market period, short-run period, long-run period and historical period? Why does marginal cost have such a strong influence on the supply response of a firm..
One of the largest car dealers in the city advertises a 3-year-old car for sale as follows. Cash price $13,750, or a down payment of $1375 with 45 monthly payments of $361.23. Sharon bought the car and made a down payment of $2000. The dealer charged..
Over the business cycle,
If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal policy must it use? If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal ..
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