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If the economy were experiencing high rates of unemployment and low inflation, the appropriate monetary policy strategy would most likely be:
a. to have the Fed sell securities on the open market.
b. to have the Fed buy securities on the open market.
c. to have the Fed buy securities on the open market while at the same time raising the reserve requirement.
d. to have the Fed cut taxes.
e. None of the above is correct.
Suppose the government impose a tax of $20 per unit of output on all firm in the industry. What effect doest this have on the industry supply curve. Find the new competitive price and output. What portion of the tax have been passed on to consumer..
The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
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 only other costs associated with manufacturing and distributing Brand X chips are the costs of raw potatoes, peanut oil, and bags; last year FoodMax spent $2.8 million on these items, which were purchased in competitive input markets. Based on..
Explain Comparative Advantage, specialization, and trade support by example. Illustrate the invisible hand theorem supported by example.
Elucidate how managers can reduce their firm's financing cost.
What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save?
Assume Bank A, which faces a reserve requirement of 10%, receives a $1000 deposit from a consumer.
The Internet boom of late 1990s was hailed as the four advent of a new economy: that would radically alter the face of business companies. By 2002, however, it was clear that new economy had not arrived on schedule.
When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using? Which is the first step in market segmentation?
Explain in briefly about two paragraphs the supply and demand analysis and the impact of government regulations at McDonalds.
Illustrate the price elasticity of demand at the equilibrium price and quantity.What is the price elasticity of supply at the equilibrium price and quantity.
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