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(a.) Third National Bank is fully loaned up with reserves of $30,000 and demand deposits equal to $100,000. The reserve ratio is 10%. Households deposit $10,000 in currency into the bank. How much excess reserves does the bank now have, and what is the maximum amount of new money that can be created in the banking system as a result of this deposit? Show all work.
(b.) Illustrate what is the fed funds rate in the banking system? Explain how the Fed manipulates this rate in order to achieve macroeconomic objectives.
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Carefully explain how these two deficits are related economically so that changes in one are reflected in changes in the other.
Switch grass was promised to be the new crop that would replace corn as the primary feedstock for bio-fuels a couple of years ago. Why have we still not switched to switch grass.
Assume that the firms act independently as in the Cournot model i.e., each firm assumes that the other firm's output will not change.
Given the formal structure of the Solow model, the numbers in the first column should in principle be per-worker GDP numbers. However, for purposes of the problem.
Air transport for businesspeople and tourists
As result government increases border patrols to catch illegal shipments. U.S. Customs agents perform DNA testing on the caviar to conclude
Find out statistics on the web from 2004 to present on following indicators of the macroeconomic conditions of the U.S. economy.
Explain terrorist attacks foster instability and may affect productivity over the short and long term.
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
Illustrate what is the efficient price of water. Illustrate what are the quantities of water allocated to agricultural also industrial use
Suppose that you are in a committee meeting of the United Nations
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