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In places where the banking system does not do a good job of allocating capital where it is most productive, what is likely to happen to the savings that people have placed in their care?
How will this impact a countries economic growth?
1. How was Georg Hegel's philosophy influenced by the ideas of Immanuel Kant? 2. What reason did Schopenhauer give for his claim that people are always unhappy?
Reserve requirement for banks is set at 5%. Your firm withdraws $42,000 on its line of credit at the Security Bank to purchase equipment for expansion. The equipment vendor deposits the amount that he receives from you at his bank, By how much has ea..
Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: Engineering advances have made it less costly to create a safe working environment.
The taxable income excluding depletion is $50,000. Find the allowable depletion charge for that year. Answer $30,161 $25,000 $50,000 $97,500
Assume your local congressman calls you for some economic advice. He wants to sponsor legislation to increase public spending on such common medical interventions as because he’s been told early detection saves money:
Derive the LM curve when the money supply increases by 500. Derive the LM curve when money supply decreases by 10%. Find the value of money demanded when income Y = 15,000 and interest rate R = 5. Is this equilibrium? Why? Why not?
If the investor wants to receive 8% interest, compounded semiannually, how much would he or she be willing to pay for the bond?
Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leaders should do to keep it from happening again.
How interest rate affects investment?
For each of the following, determine whether it represents moral hazard, adverse selection, both, or neither. Suppose prospective clerical workers fall into one of two categories in equal numbers: high productivity (HP) and low productivity (LP). An ..
First, draw the AD, SRAS, LRAS diagram for the U.S. economy starting at the long run equilibrium. Label your graph thoroughly. Second, show on your diagram what happens to the U.S. economy when the U.S. government lowers income taxes across the board..
A donut shop has a production function given by Q = 50K1/3L1/2, where Q is the number of donuts produced per hour
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