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1a. The public's preference is to hold their money as half cash, half demand deposit. Reserve requirement is 25%. Determine monetary multiplier.
b. They now decide to split off half the cash into savings accounts. How much M2 is generated from a $100 increase in monetary base?
Is the company charging the optimal price for the product. Demonstrate how you know.
A perfect competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q^2-What is the lowest price at which the firm can break even?
What price should DD set to maximize profits? What would output be if DD acted like a perfect competitor and set P = MC?
Illustrate what economic forces and mechanisms work to maintain trade equilibrium. How does the balance of trade impact business decisions.
Suppose that you hire workers to address and stamp envelopes. Each worker earns $5 per hour and produces 50 addressed, stamped envelopes per hour. You have unlimited free office space and can therefore add as many workers as you want with no fall-..
Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT: maximize total costs maximize output, subject to a breakeven constraint maximize the happiness of the administrators of the NFP enterprise maximize the utility..
1.What factors led to the mortgage default crisis 2.How did mortgage defaults affect banks involved in mortgage lending and mortgage investing? 3.Securitization TARP What do these mean 4.How did mortgage-backed securities spread losses during the ..
Collect an article from an Australian newspaper that relates to the current Australian macro-economy or a macroeconomic issue or problem. In a paragraph indicate which section of the course it applies to, why you selected the article and provide a br..
Explain how and why the relative tax burdens on consumers and producers would be different for the following taxes: A tax on all beverages; a tax on coffee; a tax on dark roast espresso.
Consider current budget problem of many states. What is it Explain. What are the two basic choices for them to get out of financial trouble Explain the impact of each. Why are some states playing for a federal bailout if needed
Techland and Clothworld are 2-nations with the similar number of employees. In Techland each employee can make 4 units of technology OR 4 units of clothing.
Explain why is it important for a country to calculate their GDP and release this information to the public.
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