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Read the scenario below, and then answer questions 1 and 2. Refer to this week's readings in the text, if needed.
Scenario: Bank A has an increase in deposits (or excess reserves) of $100M and the reserve requirement is 10% with other banks not holding reserves beyond the requirement.
How much money can Bank A create by making loans?
How much money can the banking system as a whole create? (Show calculation).
A firm's total cost curve is given by TC(q) = q(q-4)^2 + 2q. What is the formula for its AC curve?
Discuss, using examples and academic references, the statement that perfect competition gives an optimal allocation of resources but that the existence of scale economies may make perfect competition impossible.
Consider the utility function U(x; y) = min(2x; 3y) Let Px, Py and I denote the price of x, the price of y and the income level, respectively. Find the Hicksian demand functions for x and y. Jane's utility function has the following form: U(x; y) = x..
A profit maximizing price taker will produce at a level where a. the wage equals the marginal product of labor b.the marginal revenue product of labor equals the price of their output
What are the different types of control systems What are some advantages and disadvantages of the various control mechanisms How does your organization use the steps of the control process
Draw a real expenditures curve on a graph showing a recessionary gap. Explain what happens to real GDP when it is initially to the right of the equilibrium point and why Indicate two public policies that would be appropriate for addressing this si..
Define protectionist policies and describe how the imposed restrictions work and analyze the impact of such policies. Find three public policies framed by the government that have posed restrictions on international trade.
BMW Goes to War Against Chinese Carmaker
How is the price consumption curve derived and what information does it supply to the manager.
Carl is deciding whether or not to make a farm. If he makes a farm, he will earn a $50,000 grant from the government. For every 100 head of cattle that he increase and sells.
Think about our economy. Irrespective of economic conditions, we consume many goods and services in various quantities. There is a constant allocation and re-allocation of resources. How does this happen?
in other markets price is pretty important to consumers and suppliers. is this true in healthcare? why or why not?
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