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If the required reserve ratio is 10% and $1,000 of new bank reserves are created by the Federal Reserve, what is the maximum potential increase in the quantity of money in the economic system (not just the money created by the banking system but the total money supply)? Why might the money supply not increase by the maximum possible amount? Make sure you show your calculations and answer both parts of this question. Use the following equation to answer this question: Maximum Potential Increase in the Money Supply = (1/r) x Monetary base (i.e. sum of currency in circulation and bank's reserve balances), where r is the required reserve ratio.
q.sara is a dot.com entrepreneur who has established a web site at which people can design and buy a sweatshirt. sara
How is it possible for some people to pay "negative" taxes? Why is it important to distinguish between deficits and debt? Why may a budget surplus be considered undesirable?
the quantity supplied of the Real GDP in the long run is $4.3 trillion. Evalute is the economy in short run equuilibrium. Will the price in long run equilibrium be greater than, of less than, or equal to 132.
What is the Keynesian solution to a recession or depression? How does the Keynesian multiplier work? What kind of policies were/are proposed to help get us out of this recession?
What are the basic institutions which should be at place for the market economy to perform well? 'Once the institutions are at place, market economy works like a self-sufficient system with a circular flow of money and material.' Draw a complete diag..
Alice has 10lbs of cheese and 12 bottles of wine while bill has 6lbs of cheese and 8 bottles of wine. Is this an efficient allocation? If no find a Preto superior allocation. Indicate the contract curve.
the top ten percentile cutoff was 95 points. a. What is the standard deviation for the class? b. What percentile did you score in?
If you were to learn that gatorade introduced new favors in 2010, how should that information affect your calculation to the inflation rate.
What are episode-based payments (EBPs) and how do they differ from traditional FFS payments. What is the economic intent behind EBPs? Explain how EBPs relate to the idea of supply-side cost sharing?
The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms.
A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 35% of new purchasers in the market will ultimately try this brand. Calculate the long-run market share that the ..
The problem of double coincidence of wants is associated with:
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