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Inflation Targeting "Central Banks Around the World Try Inflation Targeting." What is the advantage of having an explicit target? What is the advantage of having an implicit target or no target at all?
Government regulation is, at times, a result of market failure. The marketplace can often create efficiencies naturally through supply and demand. Unfortunately gaps of inefficiencies result in market dislocations. Thus governments believe they can r..
Suppose that a company is considering building a new factory to increase their productive capacity. If they had planned to borrow the funding in the bond market, how would an increase in interest rates influence this decision
Michael makes a great point. Economists often note that there is no such thing as a free lunch
Despite strong sales and a low marginal cost of producing the product, your company has yet to show a profit from selling the drug.
the lecture described how taxing income may change savings behavior. suppose instead that the government taxed
According to Keynes, in order to get the economy out of a recession, the government should plan for a budget deficit encourage firms to export to other nations, thereby jump-starting the economy follow an expansionary monetary policyfollow a contract..
neoclassical economics was a crucial stage in the creation of a genuinely scientific unified theory of economic
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..
We can examine the effects of a subsidy with a simple supply and demand model. Suppose the graph below shows the market for kerosene in Indonesia. The line labeled S1 represents
Generally, which of the following is true? (where rE is the cost of equity, rD is the cost of debt and rA s the cost of capital for the firm.
A change in the real money supply can result either from change in the nominal money supply through Federal Reserve policy ( holding the price level constant) or from a change in the price level( holding the nominal money supply constant).
The Confab Company spends $1 million to build a new branch plant that will probably be in operation for at least 10 years.Alex’s father owns a small grocery store in town. Alex works 40 hours a week in the store but receives no compensation.
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