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The U.S. money supply (M1) at the beginning of 2000 was $1,148 billion broken down as follows: $523 billion in currency, $8 billion in traveller’s checks, and $616 billion in checking deposits. Suppose the Fed decide to reduce the money supply by increasing the reserve requirement from 10 percent to 11 percent. Assuming all banks were initially loaned up (had no excess reserves) and currency held outside of banks did not change how large a change in the money supply would have resulted from the change in the reserve requirement?
When there are economies of scope between products, selling off an unprofitable subsidiary could lead to
Consider an economy described by the following equations: Y= C+I+G, Y= 5,000, G= 1,000, T= 1,000, C= 250 + 0.75(Y-T), I= 1,000 -50r. In this economy, compute private saving, public saving, and national saving.
If required reserve ratio is raised and people decide to hold more cash instead of depositing, how is the money supply affected?
A newspaper article once reported that U.S. economy was experiencing a low rate of inflation. Why does inflation affect increase in Social Security and or profits.
The increase in demand for iPad tablet computers can be explained by: An increase in the real income of a consumer is one result from an increase in the price of a product that the consumer is buying.
The developing country uses the $100 bank balance to import $100 worth of food from the United States (US).
q.a friend of yours is considering two providers of cell phone services. provider a charges 120 per month for the
Suppose that 3% of the employed lose their jobs each month and 15% of the unemployed find a job each month, what is the steady-state rate of unemployment?
What is the function, as well as what are the main ingredients as well as connections within the policy planning network doing off describes.
Draw the real labor demand curve for each country.
Explain and graph how the economy can “fix itself” and move to the long run equilibrium? Will the price level at the long-run equilibrium be greater than, less than, or equal to 110?
qx 100 - 0.4pxqx 40 0.2pxa. at what price level would demand for good x equal zero?b. at what price level would
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