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If the Bank of Canada shifts to a more restrictive monetary policy, it will generally sell bonds in the open market. How will this action influence each of the following? Briefly explain each of your answers. a) The reserves available to banks. b) Real interest rates. c) Household spending on consumer durables. d) the exchange rate value of the dollar e) Net exports f) Real GDP
q. if the price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm
(Population growth but no technology growth) Consider an economy that 12 is described by the production function Y = K^1/3L^1/ 3. What is the per-worker production function, that is y = Y/L ? What is the marginal product of capital, that is dy/dk? F..
Suppose that the supply curve of healthcare services is perfectly inelastic. Analyze the impact of an increase in consumer.
Suppose the jeans industry is an oligopoly in which each firm sells its own distinctive brand of jeans, and each firm believes its rivals will not follow its price increases but will follow its price cuts. Draw and explain the demand curve facing eac..
what will be price of wheat, how much total wheat will be demanded and how many wheat farms will there be.
The initial cost of a pickup truck is $11,311 and will have a salvage value of $4,266 after five years. Maintenance is estimated to be a uniform gradient amount of $177 per year, with zero dollar for first year maintenance. The operation cost is esti..
The other product is K9Grass for consumers who have pet dogs. The addition of these two new synthetic grass products is a way for Forever Lawn to increase its:
Complete the expense budget, budgeted statement of financial performance: you will need to add the non GST items to the expense budget, and the cash flow budget which has an opening cash balance of $42,000. The opening GST liability is $2,000 and ..
Estimate t-statistics for each variable and elucidate Illustrate what inferences can be drawn from m. If R2 of this equation is 0.25, illustrate what inference can be drawn from it.
Suppose that a proposal is under review to strengthen the NPDWS for benzene, and the associated abatement level would generate a marginal social benefit (MSB) that is greater than the marginal social cost (MSC) by $125,000. On efficiency grounds, sho..
Linus has the utility function U(x1, x2) = x1 + 2x2. If the price of good 1 is $1 and the price of good 2 is 50 cents then Linus must consume equal amounts of both goods in order to maximize his utility.
Explain how scarcity affects the following decision-makers: The president of the United States A business executive A city manager The mother of a baby.
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