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If the desired reserve ratio goes down and banks take money out of reserve and put it into loans, doesn't that mean that the money multiplier comes into effect, affecting the money supply and also the total deposits?
If the U.S. economy is operating near full employment and the exhange rate increases(the dollar appreciates),
Think about Trade. Country A takes 20 minutes to make a car, and 15 minutes to make a computer. Country B takes 30 minutes to make a car, and 20 minutes to make a computer. Total work time is 1 hour. If trade begins who exports and who imports
How would the four basic markets of the macro model (Aggregate Demand and Supply, Long Run Supply, Labor, Credit or Money, Capital change) change in response to the catastrophe in japan. Most importantly, how would the lines and curves in each mar..
Fierce storms in October 2004 caused Tomato Fest Organic Heirlooms Farm to end its tomato harvest two weeks early. According to Gary Ibsen, a partner in this small business (Carolyn said, "Tomatoes in Trouble," San Francisco Chronicle, October 29,..
Suppose that Steve and Jill, a married couple, have decided to allocate $2,500 per year to their "dinner out" budget which will be used to eat at two types of restaurants: i) high-end, fancy restaurants and ii) typical national chain (and less exp..
Steel is labor intensive and rice is land intensive. According to the long run Heckscher-Ohlin model what happens when these two countries move frome no trade to free trade? Wages in France's rice industry? Wages in France's steel industry? The pr..
What is the marginal opportunity cost of services in each country? Who has the comparative advantage in factory-stuff?
The company articles of incorporation and state laws place no restriction on the sale of stock to outsiders. An unexpected opportunity to expand arises that will require an additional investment of 14 million.
Suppose perfect competition. Yoland is a small nation that takes world value of corn as given. Its domestic supply and demand for corn is given by the following;
The utility-maximization model assumes that the typical consumer is rational and acts on the basis of well-defined preferences. Because income is limited and goods have prices, the consumer cannot purchase all the goods and services he or she migh..
Which two of the text's possible explanations for increasing wage and salary inequality seem least consistent with the following fact The distribution of earnings has become more unequal within industries (Both goods and service industries) and wi..
Acme sells cans of mixed nuts. A typical can has 100 nuts. In the past, 5% of the nuts were cashews, but now Acme is advertising that its new and improved can of mixed nuts has 40% more cashews. Cashews make up what percent of the new and improved ca..
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