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We have focused on how banks create money. I spoke to a banker the other day; he assured me that he did not create money. In fact, he stated that all he did was provide service to the community by lending whatever funds were available to the local merchants. There seems to be some difference of opinion between bankers and economists. Can you provide insight on this?
What difference does it make how societal “development” or “progress” is measured? What difference might it make if the Genuine Progress Indicator (GPI) were to replace the Gross National Product or Gross Domestic Product (GNP or GDP) as the standard..
Monetary Policy - Discuss Australia's Monetary policy during last 3 to 5 years. What are its affects and its problems on Australian Economy
Why do economists use economic models when making predictions or assumptions about the economy? Which economic model do you believe is the most beneficial to YOU at the present time? Why?
The time series Xt is generated through the ARIMA model. Where B is the back-shift operator, and at is white noise.
The following question provides some practice calculating the AFPs for different insurance policies. If the individual remains healthy (80% probability), she will consume $500 in medical care in the upcoming year.
XBC Inc. is planning to buy a new car. Model A costs $22,000 and is expected to have a life of 4 years. Model B costs $35,000 but it is expected to last 6 years. The salvage value is expected to be 10% of original cost for either model. Using annual ..
Indicate whether each of the following involves an upward or downward shift in the long run average cost curve or instead, involves a leftward or rightward movement along a given curve. Also indicate whether each will have an increasing, decreasing, ..
Many economists claim that the property tax is the superior tax for municipal governments. Do you agree or disagree? What are the pros and cons of the property tax? If you were advising a city with respect to the property tax and how much the city sh..
John’s utility of income function is U(I) = 10√I(10 sqroot I). Is John risk averse, risk loving, or risk neutral? First answer based on the shape of the utility function, then consider the following scenario. Assume that John owns a lottery ticket th..
Illustrate what is happening to the U.S. real exchange rate in each of the following situations. Explain. The U.S. nominal exchange rate is unchanged, but prices rise faster in the U.S. than abroad.
Gina Robertson is a sales representative with Coast-to-Coast Trans, a company that provides full service chartered flights—airplanes, pilots, staff, and services—to client groups. She has just closed a large sale of several flights each week for four..
Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related?
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