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In a third world country, the central bank wants to reduce the inflation rate by 5%. The current money supply is $2.0 trillion and the goal is to have equilibrium in the money market (Ms=Md). What should be the new target interest rate to reduce the inflation rate by 5% and to keep the money market in equilibrium? Use the quantity theory of money model (M*V=P*Y, or M*V=P*Q) and assume that V and Y (or Q) are constant. The estimated money demand function is given as: Md = 10-0.7i
Please show work and explain.
A 0.20-kg metal sphere oscillates at the end of a vertical spring.As the spring stretches from 0.13 to 0.21 m (relative to itsunstrained length), the speed of the sphere decreases from 5.3 to4.6 m/s. What is the spring constant of the spring?
suppose that beer preresents 22 percent of the economy and pizza represent 4 percent. Chocolate is the rest of the economy. What was the inflation rate for this economy?
Illustrate what would be the effect of poor weather on the consumer surplus, producer surplus, deadweight loss.
Supply of Loanable Funds, e.g., your disposable and expected future income. Discuss and predict how your decisions and transactions in the loanable funds market should change.
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
Explain, in plain words, illustrate what the R-square in this regression indicates.
the last major conflict between the US army also Native Americans took place at
chance that she will lose her cash or have it stolen. Under these conditions, how often does Tracy go to the ATM, and how much cash does she take out each time?
Briefly explain why the three variables are appropriate explanatory variables to predict the consumption of services or why they are related to consumption.
The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
q1. 1. give an example of an organization or business in your area that performs the form function and explain why you
How would that plan compare to one that requires each firm to provide a $100,000 group program that would cover all employees in the firm, no matter what the number of employees was?
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