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In the United States, the Federal Reserve frequently engages in buying and selling of the government securities as well as other policies. In recent years, the Fed has reduced the Discount Rate several times. The Fed has also purchased substantial amount of government securities. Explain the logic of these actions by the Fed. Why are they doing this and what they hope to accomplish? Take a stand in support or against these actions and state your reasoning. If you were to advise the President, what course of action would you recommend?
Shift the curve in the subsequent graph to show the effects of such a training program.
There are 2 fishermen, Zach and Jacob, who fish along a certain coast. Both would benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional lighthouse is $25.
Suppose that, in a small country, the equilibrium price of corn is $300 per ton and that the government establishes a price floor at $400 per ton by promising to buy any resulting surplus. A few years later, the demand for corn increases because a fo..
Defend your use of either monetary policy or fiscal policy to do this.
q1. in this same country 8of the capital stock depreciates each year. additionally the ecnonmy consumes 60 of
During the purchasing decision, evaluation stage, the consumer forms preferences among the brands in the choice set.
Describe the central philosophical assumptions behind Reaganomics. What were the key policies by which it was implemented? To what extent were these policies a break with previous economic approaches?
Evaluate the overall explanatory power of the regression model. Use a 0.05 level of significance. State all your hypotheses and explain your results. Do not use rules of thumb. Note: You will need to calculate the F statistic to answer this questi..
Compute the percentage change in nominal GDP, real GDP also the GDP deflator.
Illustrate what price-quantity combination maximizes your firm's profits. Compute the maximum profits.
Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f (a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. (b) What is the SPNE for the entry game with the following tim..
Explain utility, total utility and marginal utility and the differences between them. Explain with examples the law of demand and the demand curve. Explain “the rational consumer, marginal utility and price. With examples explain how elasticity of de..
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