Federal reserve do during the financial crisis

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Q1. Your enterprising uncle opens a sandwich shop which employs 7 people. The employees are paid $6 per hour also a sandwich sells for $3. If your uncle is maximizing his profit, illustrate what is the value of the marginal product of the last worker he hired? Illustrate what is which worker's marginal product?

Q2. Elucidate how does TARP illustrate the problem of moral hazard? Illustrate what did the Federal Reserve do during the financial crisis of 2008 also 2009?

Q3. Assume interest rates fall sharply in the United States but are unchanged in Great Britain. Other things equal, under a system of freely floating exchange rates we can expect the demand for pounds in the United States to:

Reference no: EM1315426

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