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If the Fed sells $20 million worth of government bonds to the public (open market sale), will the lending capacity on the banking system increase or decrease? By how much will the money supply change? Assume the required reserve ratio to be 0.1.
explain how much of the current unemployment can be attributed to cyclical factors.
Now Assume that the interest rate falls to 50 percent, and the household decides not to borrow or lend at all. Is the household better off or worse off with the higher interest rate.
Yolanda runs a bulldog farm and when she employed one person, she produced 1,000 bullfrogs a week. Construct Yolanda's total variable cost and total cost schedules. Illustrate what is Yolanda's total fixed cost.
The price elasticity of demand for mopeds, in absolute value, is 0.5, by what percentage will the quantity of mopeds demanded increase if the prices fall by 10%?
What would happen to the demand curve if the major taxi companies lowered their prices? If you were asked to forecast future demand for this firm, how would you set up a forecasting model?
In the model for airline seat pricing, we studied the case of non-refundable tickets. What if the airline offers refundable business class tickets. You can buy a business class ticket and return it for a full refund if you do not fly.
An increase in buyers' incomes
When a profitable Japanese-owned company owns a car factory in the U.S. and sells the cars within the U.S., this [increases/decreases/does not change] the U.S. trade deficit and [increases/decreases/does not change] the U.S. current account deficit.
1.name 5 stylized facts about the business cycle.2. rank order these three ideas from most optimistic about how a
Which of the following are tools available to the Federal Reserve to influence the money supply directly?
illustrates the likely effect on the marketplace for eggs. Indicate in each case the impact on equilibrium cost also equilibrium quantity.
Before the war, Iraq had the capacity to produce a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished because the oil wells were on fire. Draw Iraq’s PPF before and after the war, assuming that the only..
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