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Write an equation that expresses the money supply multiplier (for M1) in terms of its three determinants. Define each of these three variables and explain intuitively why a decrease in each of the three produces an increase in the money supply multiplier.
Draw a diagram showing the current situation of the firm. In addition to the above information, suppose the price of the output is $13/unit, if the firm wants to maximize its profit, what should it do? Explain in detail with the aid of a diagram.
Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. But many economists think that, to understand economic recession, it is more significant to look at investment than consumption. Why?
Evaluate the range of marginal revenues
The nation is divided into __12______ Federal Reserve districts, each having a Federal Reserve Bank.
If your payroll (budget) is increased to $120,000, what should you do to maximize the number of customers served?
Suppose that a perfectly equal distribution of income existed in Disneyland. Which of the reccent residents would have the same income he or she has in present distribution?
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Shelly's preferences for consumption and leisure can be expressed as. This utility function implies that shelly's marginal utility of leisure is C-200 and her marginal utility of consumption is L-80.
A firm uses two inputs, unskilled labor (L) and capital (K) to produce its product. The wage rate for one unit of labor is $5, while units of capital cost $20.
How income may change savings behavior
Assume that, from an initial consumer equilibrium position, the price of good X falls-explain how and why the consumer's relative consumption of two goods will change.
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