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Monetarists believe there's a direct link between the money supply and prices, real GDP, and employment. If the money supply is allowed to grow at a predictable rate, the economy will stay in balance. In effect, they feel that in the long-run, the economy will be stable at full employment if the velocity of money is predictable.
The Monetarists could have ended the Great Depression and brought the economy back to full employment. The Depression never would have happened if the Monetarists had been in charge.
Would a Monetarist be more likely to favor fiscal, monetary, or neither policy? Why?
The movement in the direction of a market-based system with freely determined prices, competition, profits, private ownership, and other features of capitalism is not simple. Discuss some of the challenges associated with an economy transitioning fro..
Transactions involving interest include which of these elements?
QUESTION 1: According to the quantity theory of money, the quantity of money determines the
A restrictive monetary policy, all else equal, will: Stating the dollar has strengthened against the yen means the dollar has depreciated.
About John Maynard Keynes. Explain the 4 tenets of the classical position. Consequences of Pease: explain Keynes concerns regarding the Armistice. What did Keynes really mean by “in the long run we are all dead>” Explain how the multiplier can achiev..
Determine how much money would be in a savings account that started with a deposit of $2000 in year 1 with each succeeding amount increasing by 10%/yr. Assume a 7 year period and an interest rate of 15%.
Suppose you are the Team Manager in a multinational company with team strength of 10 members. You are given the responsibility of ensuring that the team gives excellent performance or results. What are the key issues you have to handle in team bui..
A friend wants your advice. His aunt recently left him $100,000 that he must invest in one or both of two different corporations. The current price per share of each is $100. If your friend buys 1000 shares of the first corporation, what will be the ..
You are the manager of a firm that sells a “commodity” in a market that resembles perfect competition, and your cost function is C(Q) = 40Q + 5Q2 (so MC = 40+10Q). Calculate the expected market price. What output should you produce in order to maximi..
Consider a health utility questionnaire with only 3 domains (physical role, social role, and cognitive health), each of which has two levels (no problem and some problems). Calculate the utility of a person having some cognitive problems and some so..
Pick an existing or proposed environmental policy. Use market failure theory to explain or justify the policy. Then use public choice theory to provide a possible alternative explanation for the policy.
what is the approximate real rate of interest. Illustrate the exact real rate.
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