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Given that monetary policy has only a long term effect on an economy, central bankers should follow monetary rules rather than operate a more proactive policy approach as inflation targeting central banks currently do. Discuss.
Suppose that workers and firms could always predict next year\'s price level with perfect accuracy.
Assume Springfield's economy moves into a recession and Y falls to $9 and increasing unemployment allows widget makers to decrease wages to $18 per hour.
Suppose if 100$ million in excess reserves are made available to banking system, by how much can the banking system increase the money supply?
The short run is decision making period during which at least one input is considered fixed. The fixed input is generally considered to be some aspect of capital,
Illustrate (Draw the graph) the following events with AS and AD shifts. Start with the initial graph then add the change to either the AS or AD.
Discuss and explain how exchange rates are determined using supply and demand. Provide some examples. Determine the current exchange rate of the United States to Japan, Canada, Germany, and Mexico currencies?
An engineering student requires to replace the battery in her car so that she can drive home for a vacation after Spring Semester. She has located following possibilities:
Several years ago the National Association of Broadcasters imposed restrictions on the amount of nonprogram material (commercials) that could be aired during children's television shows, effectively reducing the quantity
Suppose that the currency drain ratio is 10 per cent of deposits and the desired reserve ratio is 1 per cent. If the Reserve Bank sells $100,000 of securities on the open market, calculate excess reserves after the first round. Calculate the money..
Let's consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita always consume equal amounts of rice and beans.
Illustrate what are the benefits of free trade. Who are the winners and losers when the government imposes tariffs and quotas.
James Pizzo is president of a company that is price leader in the industry; that is, it sets the price and the other firms sell all they want at that price.
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