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Describe the role of a country"s central bank and the tools that a central bank can use to control the money supply, and explain how a central bank can use monetary tools to implement monetary policy.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume.
Elucidate how the steepness of the short run aggregate supply curve affects the government's ability to use fiscal policy to change real GDP.
Larry receives a scholarship to attend the local college. The scholarship terms provide $7,000 for tuition, books, and related expenses for the academic year
Show the changes to the T-accounts for the Federal Reserve and for commercial banks when the Federal Reserve buys $50 million in U.S. Treasury bills.
Describe the creation of money from excess reserves and multiple deposit expansion in banking system. How does the multiplier affect the supply of money?
Provide an examples of how each industry practices price discrimination. What are the short and long term strategic reasons these industries employ tiered pricing.
Consider the following utility function: U(X,Y) = max(X, 3Y) (a) draw the indifferent curve for this utility function. (b) find the Marshalian funtions for X and Y and the corresponding indirect utility function.
Each student will select a topic from the Reading sources, mention on page two in this syllabus. The objective of the paper will be to present a professional position of your selected topic as it relates to the reading of both the textbook chapters a..
Identify at least four policies from the textbook that the government has created to impact economic growth and productivity.
Take a stand on whether or not it would be easier for the Federal Reserve to expand the supply of money in a period of prosperity versus in a period of recession. Money must have material backing to have value.
Show the effect of moving to a consumption tax on the loan able funds market if people react favourably to the incentive to save. Choose which curve or curves you believe are affected.
Explain why is it that increased productivity leads people to take out more loans - which then leads to more growth.
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