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The Fed sells $100,000 in Treasury Bonds to Chase Bank in the secondary market.
a) What happens to the monetary base as a result?
b) If the reserve requirement is 20%, c=0.5 and e=0.001, what happens to the money supply as a result?
c) What happens to the federal funds rate as a result?
Macro-economics is perhaps most divisive area of economics. Macro economists divide themselves into different schools of thought. Two of the biggest camps are the Keynesians and the Monetarists.
Assume which is more difficult to monitor workers at larger firms than at smaller firms. According to the delayed payment compensation model,
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Offers automobile brake analysis also repair at a various of outlets in the Philadelphia area.
Suppose that aggregate price level is constant, interest rate is fixed, and there are no taxes on foreign trade, how much will the aggregate demand curve shift and in what direction if the following events occur?
Why does the assumption of independence of risks matter in the examples of insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively corr..
Illustrate what effect on the potential industry profitability would Porter's Five Forces framework suggest this new technology has.
Winston Churchill once said that democracy is the worst form of government except for all others. What did he mean in microeconomic terms Would a more viable democratic system add to or reduce the ability of government.
Describe how each of the following will affect the market for crude oil. Make sure you highlight whether supply or demand is affected and whether value will increase or decrease.
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