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Which of the following chains of logic explain the functions of banks in the process of economic growth?
a) Savers deposit their savings in banks. Banks direct these funds to firms that invest and engage in capital accumulation that furthers economic growth.
b) Savers deposit their savings in banks. Banks engage in capital accumulation, which plays an important role in economic growth.
c) Firms borrow from stock and bond markets. These funds are used for investment, which leads to the capital accumulation that furthers economic growth.
d) The demand for loanable funds shows an inverse relationship between the real interest rate that banks charge and the quantity of loans demanded.
Suppose household saving is $20, the government spending deficit is $4, and investment is $20.
Assuming that no currency leakage occurs, how much will the bank be able to lend to its customers following the Fed's purchase?
q1. rex has determined that demand for his product is given by q180-5p and cost equation given by c75.3q. determine the
The movement to free international trade is most likely to generate short-term unemployment in which industries?
You are also aware that sometimes when you and the other project members are slaving away over the project, she is playing golf with senior managers. Illustrate what is your evaluation of her behavior.
q.consider a solow growth model with cobb-douglas construction depreciation rate delta savings rates population growth
The structural engineering design section within the engineering department of a regional electrical utility corporation has developed several standard designs for a group of similar transmission line towers. The detailed design for each tower is bas..
In the past year, oil prices have plunged from more than $100/barrel to less than $50/barrel. What impact has this had on OPEC and other oil producing nations? What's the benefit to consumers and manufacturers?
The production function for Our Production is Q = 25L – 0.05L2 ; where Q is output and L man–hours. (i) What level of man–hours will maximize total output? (ii) Calculate the marginal product for the following levels of man–hours: 25, 50, 100, 150, 2..
The purchase of a car requires a $ 24,587 loan to be repaid in monthly installments for four years at 12% annual real interest rate. If annual inflation rate is 4 %, find the exra amount to be paid in 20th month due to inflation.
Alternatives A and B require investments of $10310 and $13400, respectively. Their respective net annual cash inflows are $3300 and $4000. What is the rate of return for each alternative and for the incremental difference? if the interest rate is 1-%..
Elucidate Average costs are minimized when marginal costs are at their lowest point.
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