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For each of the following, state whether it is considered money in the United States. Explain why or why not.
a. A check you write against deposits you have at Bank USA.
b. Brazilian reals.
c. The available credit you have on your MasterCard.
d. Reserves held by banks at the Federal Reserve Bank.
e. Federal Reserve notes in your wallet.
f. Gold bullion.
g. Grocery store coupons
The Federal Reserve Board is considerining changing its target inflation rate. However, they are concerned about the immediate effect on inflation. Find the sensitivity of equilibrium inflation to a change in the Fed's target inflation rate in the..
Will it shift to the right or left? Where will the equilibrium be on the LRAS now? What is the correct answer here and why?
Supposes a perfectly competitive, increasing-cost industry is initially in long-run equilibrium and demand suddenly increases. Explain how demand change affects price and quantity and who benefits from increased demand.
Discuss the social and economic effects of colonization? How did it contribute the “Price revolution”?
Under free trade, Argentina exports beef. Its government imposes a tax t on exports. Draw and label a diagram to show what happens to Argentine beef consumption, production, exports, domestic prices, consumer and producer surplus
Suppose that there is no growth in real GDP and inflation is equal to -2% per year. (Negative inflation is the same as deflation.) Measured in ducats, illustrate what will GDP be equal to next year.
Consider the following game. A firm currently on the market (incumbent firm) faces the potential entry of one firm (the entrant). If the incumbent remains alone on the market, his profit is 1000. The incumbent can try to convince the entrant to do no..
Suppose Yon Sun Corporation's free cash flow during the just-ended year (t = 0) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operatio..
Elucidate how changes in government spending also taxes positively do or negatively affect the economy's production also employment.
q.suppose you go to buy a gm car. the car is priced at 24000. the salesperson offers you financing along free interest
q1. portland and aleland are two identical countries. beer manufacturers in each country compete under monopolistic
Illustrate what money supply should the Fed set in yr 2009 if it wants to keep the price level stable?
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