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Q. This question uses the general monetary model, where L is no longer assumed constant, and money demand is inversely related to the nominal rate of interest. Consider the same scenario described at the beginning of the previous question. (Consider two countries: Japan and Korea. In 1996 it experienced comparatively slow output growth (1%), while Korea had relatively robust output growth (6%). Suppose the Bank of Japan allowed the money supply to grow by 2% each year, while the Bank of Korea chose to maintain relatively high money growth of 12% per year). In addition, the bank deposits in Japan pay a 3% interest rate, i¥ = 3%.
Compute the interest rate paid on Korean deposits.
Find the subgame perfect equilibria of the variant of the game in which the post-entry competition is a game in which each firm chooses a price, rather than an output.
Prices the selling monopoly charges for TV sets in periods 1 and 2.
How much of each good does Alice buy as well as how much does she work.
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Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small-denominated time deposits decrease by $50 billion.
Is the price mechanism of a perfectly competitive market a good mechanism to allocate gasoline.
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After reviewing efforts to reduce the Deficit, discuss the actions in use by Congress since 1985 to reduce the budget deficits.
Discuss the manner in which an analyst would compare the relative profitability of the two potato chip segments.
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What is the most that Jo should be willing to pay the consultant for the information.
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
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