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Q1. Show how each of the following would initially affect a bank's assets and liabilities.
a. Someone makes a $10,000 deposit into a checking account.
b. A bank makes a loan of $1,000 by establishing a checking account for $1,000.
Q2. Suppose the money supply is currently $500 billion and the Fed wishes to increase it by $100 billion. Given a required reserve ratio of 0.25, what should it do? If it decided to change the money supply by changing the required reserve ratio, what change should it make?
How vegetarians sometimes have trouble making sure they get enough protein in their diets.
Use an indifference curve-budget line analysis to depict the situations, prior to the ban on smoking, of a student who smoked on campus, and of a student who did not smoke.
Illustrate a form of financial instruments through which corporations and governments borrow money from financial investors and promise to repay with interest.
What can you conclude about the firm's use of its resources versus other options (or alternate uses)?
Why might leasing a new Porsche be good investment for an aspiring Hollywood film producer, even though, he can't easily afford the monthly payments.
Estimate the regression coefficients using ordinary least squares also interpret them. Predict the weekly sales for a store with 10 feet of shelf space situated at the back of the aisle.
A basic assumption for comparing the straight-line production possibilities curves for two nations is that the production possibilities curves reflect.
Illustrate what are the new long-run equilibrium values of these three variables.
Describe whether Indian Consumer goods industry is growing at the cost of future profitability.
The data is listed per quarter, and real GDP data was calculated using 2005 as the base year. Fill in the columnns for the GDP deflator and for the percent increase in price level.
Why does this happen that Research the recent history of gasoline pricing in Texas, and attempt to relate any fluctuations you observe to documented supply and demand factors. Be sure to cite any references used.
Assume there is a simultaneous increase in government expenditure also reduction in the funds provide.
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