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Suppose that you take $50 in currency out of your pocket and deposit it in your checking account. If the required reserve ratio is 8%, what is the largest amount (in dollars) by which the money supply can increase as a result of your action? Include the $50 as part of the new money supply and assume the bank does not hold excess reserves.
Suppose that the cross-price elasticity of the demand for beer with respect to the price of wine is +0.30 in Sweeden, but -0.25 in Luxemborg. Which of the following is true:
Consider a game of the “Jack and Jill” type in which a market is a duopoly and each firm decides to produce either a “high” quantity of output or a “low” quantity of output. If the two firms successfully reach and maintain the cooperative outcome of ..
You would prefer to have equal cash flows from the stock over the next two years. How can you create equally-sized home made dividends? Ignore taxes.
With some services, e.g., checking accounts, phone service, or pay TV, consumers choose between two or more payment plans. One can either pay a high entry fee and get a low price per unit of the service or pay a low entry fee and a high price per uni..
Calculate the prot-maximizing monopoly price and quantity. Calculate the price and quantity that arise under perfect competition with a market supply curve P = Q=2.
In recent years, there have been significant increases in US money supply. How does the Federal Reserve "increase" the US money supply in the most active way?
You explain to your friend Haslina, who runs a catering service called "Meals in a Zip," about an economic theory which asserts that consumers will purchase less of a product at higher prices than they will at lower prices. She contends that the theo..
Suppose prices are equal in Europe (in euros) and the US (in dollars) at the end of 2006. In 2007, prices increase by 3% in Europe (in euros) and 1% in the US (in dollars). According to PPP, the euro should appreciate or depreciate? By how much?
q1. the coase theorem suppose a firm pollutes a stream that has a recreational value only when pollution is below a
Is the concept of a just price a positive or a normative concept? Why?
Complete each activity-related sentence with its appropriate term or terms The act of making your body engage in movement that results from skeletal muscle
What amount of profit is the firm earning? Is this firm in a short-run or long-run equilibrium? Why?
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