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Suppose M2 is defined as follows: M2 = C + D + T
where C = currency in circulation D = demand deposit
T = saving and time deposits
Suppose the required reserve-deposit ratio for demand deposit (rd) is greater than that of saving and time deposits (rt). Let k be the cash to total deposits ratio; t be ratio of saving and time deposits to total deposits; and e be the excess reserve to total deposits ratio. Derive the money multiplier for M2 in terms of k, rd, rt, t and e. What happen to the multiplier and money supply if
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Briefly summarize the event for your classmates and then apply one of the macroeconomic concepts from the course. What are the implications of this event for our economy?
A firm in perfectly competitive 'industry has this cost function: TC = 900 + q^2-If market demand is QD = 1800 - 20P, what is the long-run equilibrium price, quantity produced by the firm and the industry, and the number of firms in the industry?
Compute the new macro equilibrium under the assumption that the central bank does not respond to this shock and explain how the central bank could choose to validate this shock. Alter the AD curve to build this "validation" into the model and comput..
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
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A food chain charges higher prices for its products in poorer neighborhoods compared to the ones in affluent communities. Give your opinion on why this occurs. Provide support for your response.
Draw an aggregate demand(AD)-aggregate supply (AS) complete framework that shows where the US economy in a full employment equilibrium& then where it is now.
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Can you find others that are illegitimate and that you would classify as spam, phishing, or possibly carriers of malware? What factors determine whether a company's use of e-mail should be considered legitimate or illegitimate?
Watch the movie "A Beautiful Mind". Pay attention to the scene where Nash argues for an optimal equilibrium (the bar scene). Would you say that his "equilibrium" constitutes Nash equilibrium Explain.
What is the understanding of the word demographic dividend?
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