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Q. At one time, the country of Aquilonia had no banks, but had currency of $10 million. Then a banking system was established with a reserve requirement of 20 percent. The people of Aquilonia deposited half of their currency into the banking system. If banks do not hold excess reserves, illustrate what is Aquilonia's money supply now?
The banking system has $10 million in reserves, the reserve requirement is 20 percent, and also there are no excess reserves. The public holds $10 million in cash. Then bankers decide that it is prudent to hold some excess reserves, also so begin to hold 25 percent of deposits reserves in the form. Additional things the same this action will cause the money supply to illustrate what?
The market for autographs including letters o other documents signed by famous people is subject to frequent large price changes as are markets for most collectables.
q.between two production technologies firm can choose a new product line. if it installs expertise 1 its annually costs
What is meant by absolute advantages and comparative advantages? What are the differences between the two?
Suppose capital is fixed at 16 units. If firm can sell its output at a price of $100 per unit and can hire labour at $25 per unit, Explain how many units of labour should firm hire in order to maximize profits.
Evaluate if the company made any mistakes in its decisions over time, and recommend any changes or improvements for the future operations. Refer to the financial reports when making specific observations or recommendations.
Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and invariably, create employment possibilities.
If the government imposes a ceiling of $6 on the price of the firm's product, Illustrate what output will the firm produce also Illustrate what will be total profits.
Suppose banks keep no excess reserve and no individuals or firms hold on to cash. If someone suddenly discovers $12 million in buried treasure and deposits it in a bank, elucidate what will happen to the money supply if the required reserve is 10 ..
Specialty Steel has carefully measured production in its new plant to determine whether it is technically efficient in production.
Suppose household saving is $20, the government spending deficit is $4, and investment is $20.
Illustrate what are the factors that will allow them to increase their added value in this type of competitive environment.
Does either player have a dominant strategy? Explain why or why not? Is there a dominant solution for this game? c) Identify the Nash equilibrium of this game. Explain.
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