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In general, if the Fed increases the supply of money by 5%, which of the following statements can we claim to be true with certainty? (In general means, do not make any assumptions about anything.)
A. The price level will increase by 5%, but the real GDP will remain the same.
B. The real GDP will increase by 5%, but the price level will remain the same.
C. The Nominal GDP will increase by 5%.
D. We cannot claim any of the above to be true with certainty.
It would not pay a firm to product anything in the short run if price were
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Explain how an open market sale of Treasury securities by the Fed affects the following:
Problem 1: In a population µy = 100 and σ2y = 43. Use the central limit theorem to answer the following question:
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Which of the following is not a valid generalization concerning the relationship between price and costs for a purely competitive seller in the short run?
You want to borrow $20000. The lender offers you two interest rates to choose from. You can borrow for 8 years at either 10% per year simple interest or at 8.5% per year compounded monthly. The loan is to be paid in a lump sum. How much interest will..
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Prepare a two page paper using APA format discussing problem in the "Problems to Ponder".
You have borrowed $50,000 at an interest rate of 12%. Equal payments will be made over a three-year period. The first payment will be made at and of the first year. What will be the annual payment be?
In April, eggs cost $2 per dozen, wine costs $1 per bottle, your income is $120, and you buy 50 dozen eggs. In May, eggs cost 50 cents per dozen, wine still costs $1 per bottle, and your income is $60. Is it possible to tell in which month you are ha..
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