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Q. The central bank of the fictitious country Omega raises bank reserves by $100. What effect will the increase in bank reserves have on the money supply in each of the following situations? Explain in each case.
a. The banking system is a 100% reserve banking system.
b. The banking system is a fractional reserve banking system with a desired reserve deposit ratio of .25.
c. The banking system is a fractional reserve banking system with a desired reserve deposit ratio of .1.
If the company has not paid dividends, discuss why think the company is not paying dividends or whether they should consider adopting a dividend policy.
An individual likes owning cars is better. In order to own a car, an individual must have a 1:4 ratio of frames to tires.
How do automatic stabilizers affect budget deficits and surpluses? How would automatic stabilizers be affected by an annually balanced budget rule? Why do automatic stabilizers minimize the lag problems with fiscal policy?
Consider the following short-run production function: q = 5L2 - 1/3L3. Illustrate at what level of L do diminishing marginal returns begin. At what level of L do diminishing returns begin.
Compute the resulting utility if the population were on million higher and one million lower than the optimum.
If Rhine Company ignores possibility that or firms may enter its market, it should set a price of $10,000 for its product, which is a power tool. Explain how can firm's manager extend planning horizon.
An apparel manufacturer purchases cotton and other raw materials for the production of shirts. Would the sale of cotton from a cotton mill to the shirt manufacturer be included in the calculation of GDP? Why or why not?
Suppose that the average total cost (ATC) of producing 8 units is less than the average total cost of producing 9 units. What can we say about marginal costs (MC) in relation to ATC?
one year later, the new class discovered that, at a price of 30 cents per can, the number of cans has fallen to 125 and two revenues are down. (A) Compute the price elasticity of demand in the first and second cases. (B) Explain what may have happ..
What factors determine the intensity of rivalry in an industry. Is the intensity of rivalry in the PC industry high or low.
A site becomes wildly successful in the United States, and you decide to export overseas. Answer the following:
Why do people routinely stuff themselves at all you can eat buffets Explain in terms of both utility also demand theories.
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