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A bank has excess reserves of $400,000 and makes a new loan for $50,000. If the bank faces a 25% required reserve ratio, by how much will the money supply increase when the loan is made?
Bob has an income I = $1000 to spend on clothing and food. Letting y represent the number of units of food and x represent the number of units of clothing that he purchases, his utility function is given by:
The market for a standard-sized cardboard container comprises two firms: BooBox and Flimflax. As manager of BooBox you enjoy patented technology which permits your company to produce boxes faster and at lower cost than Flimflax.
IS Curve Exogenous Variables and Parameters Given the values in the table above, the real interest rate r = ________ when equilibrium output Y = 15.
1. what is the major problem in achieving an efficient use of the worlds water? if there were a global market in water
explain that investment can be increased both by reducing taxes on private savings and by reducing the government budget deficit A) Why is it difficult to implement both of these policies at the same time
The world price of wine is below the price that would prevail in the United States in the absence of trade. Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under free t..
a firm in a purely competitive industry has a typical cost structure. the normal rate of profit in the economy is 5
Suppose desired investment for the economy represented in the table above is $200 billion. Plot the consumption and investment function. What value is the equilibrium level of income What is the marginal propensity to consume
Tuggle, Inc., which manufactures rigid shaft couplings, has $600,000 to invest. The company is considering three dissimilar projects that will yield the following rates of return.
a firm has the following production function q kl where q output l labour measured in person hours k capital
Thinking About Thinking
Which market structure is best suited for the pharmaceutical industry (perfect competition, monopolistic competition, monopoly and oligopoly)
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