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If the central bank in the preceding question instead holds the money supply constant and allows the interest rate to adjust, the change in aggregate demand resulting from the increase in government purchases will be
a) larger.
b) the same.
c) smaller but still positive.
d) negative.
Suppose the money supply is $1 trillion. The FOMC decides to use open market operations to reduce the money supply by $100 billion. If the required reserve ratio is .05, what does the Fed need to do to accomplish the reduction? Illustrate your result..
A monopolist's demand function is P = 1624 - 4Q, and its total cost function is TC = 22,000 + 24Q -4Q2 + 1/3 Q3, where Q is output produced and sold. G) The monopolist should shut down when price is equal to or lower than?
What are the elements of negligence? What kind of damages are available under a negligence claim?
After graduating from college in 2010, Art Major\'s starting salary is $45757.00. Suppose Art Major has a cost of living adjustment (COLA) clause, i.e. an escalator clause in his labor contract so that he will be able to maintain this same level of p..
The CFO for a corporation deliberately misstates expenses on the income statement purely out of a sense of loyalty to his CEO and the company.
q.1. real wages and productivity-are workers paychecks keeping up? over the long run traditionally real wages grow at
In the specific factors model predict who seeks protection against trade and who does not. Explain your answer. How does your answer change in the Hecksher-Ohlin model? Explain
Explain why does this happen. Research the recent history of gasoline pricing in your area, and attempt to relate any fluctuations you observe to documented supply and demand factors.
How did samsung's unveiling of the galaxy S5 affect the demand for the S4? what determinant(s) of demand changed? How did walmart's price cut compensate?
BUS499(2011A) Final Exam: - Critically argue whether GDP is a good measure of economic well-being. You are required bring examples and academic references to support your answer.
What is the value of a 10 percent annual coupon, $1,000 par value bond with 20 years to maturity if the required rate of return on the bond is 12 percent?
The dividend is expected to grow 7 percent a year for the next 3 years and then at 5 percent a year thereafter. Illustrate what is the expected dividend per share for each of the next 5 years.
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