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First Bank has total deposits of $2,000,000 and legal reserves of $220,000. a. If the reserve requirement is 10 percent, what is the maximum loan that First Bank can make, and what is the maximum increase in the money supply based on First Bank's reserve position? b. If the reserve requirement is changed to 5 percent, how much can First Bank lend, and by how much can the money supply be expanded?
at the beginning of the year an audio engineer quit his job and gave up a salary of 175000 per year in order to start
Many economists think that we are in the very early stages of putting computer technology to work and that full incorporation of computers will cause a massive restructuring of virtually every institution of modern life. If they are right, what ar..
It is believed that fiscal policy is more effective under a fixed exchange rate than a flexible exchange rate. Using the IS-LM model, illustrate and explain this differential impact for an expansionary fiscal policy.
Suppose market demand and supply are given by Qd = 300 - 4P and QS = -50 + 3P. The equilibrium price is: a $35. b $40. c $50. d $60.
Explain why you used either the CPI data or the GDPD data in your answer to part A.
what impact will an unanticipated increase in the money supply have on the real interest rate real output and
Consider a simple island economy where the sun is always gentle and warm and the breezes are cool. Let's call this island DanLand. There are four product markets in DanLand: coconuts, fish, textiles, and beer. Coconuts grow freely around D..
How many units of labor should the firm use in order to produce 400 units of output at the least cost and the minimum cost of producing 800 units of output is what?
1.outline a plan that will assess the effectiveness of the market structure for the companys operations.2.suppose the
leland manufacturing company anticipates a noncontact growth pattern for dividends. dividends at the end of year 1
according to the textbook the profitability of cable tv service is approximately 5 that of petroleumnatural gas is 10
consider the market for corn in the united states. suppose that the mandated percentage of ethanol in gasoline is
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