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Suppose that one giant bank, the Humongous Bank of America, held all the checking deposits of all the people, subject to a 10 percent legal reserve requirement. If reserves increased by $1 billion, could the Humongous Bank expect to lend out more than 90 percent of the reserve increase, knowing that the new deposit must come back to it? Would this change the ultimate money-supply multiplier? Explain both answers.
The current economic situation? is the overall national economy improving or worsening? how fast? why?
With the help of a well-illustrated diagram, explain how the long-run equilibrium of a perfect competitive model is achieved in an industry. Using an appropriate diagram, illustrate the profit maximizing output for a monopolistic firm.
1. Which of the following industries comes closest to the model of perfect competition?
Price Discrimination (PD) occurs "when a firm charges different prices to different customers for the same good". Explain under what conditions PD is possible and profitable?
A one-year, $100,000 loan carries a coupon rate and a market interest rate of 12 percent. The loan requires payment of accrued interest and one-half of the principal at the end of six months. The remaining principal and the accrued interest are due a..
Why is the impact of images a major controversy in the magazine today? Have magazines images affected your own life in any way?
Suppose Harrod-Damar model with fixed capital-output ratio. Suppose that the country saves 20 percent of its income and has a capital or output ratio of 4.
How many trees should be cut to maximize the profit?
Discuss the various uses of public budget. Explain the politics of administrative reforms. Explain how ethical choices influence the decision making and performance of public administrators in recent times
Under the concept of equilibrium whenever dealing with quantity and price.
How can a country's GDP be manipulated
a firm has cost functioncy y2 1 if y gt 00 if y 0let p be the price of output.1 if p 2 how much will
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