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a. Use a T-account to show the initial effect of this transaction on Bank of America's balance sheet.
b. Suppose that Bank of America makes the maximum loan they can from the funds you deposited. Use a T-account to show the initial effect on Bank of America's balance sheet from granting the loan
Answer the following Multiple choice questions.
Two goals of monetary strategy in the United States are price stability and full employment. Explain with the help of the appropriate graphs.
At a product price of $56, will this company produce in the short run explain why or why not? If it is preferable to produce, what will be the profit-maximizing or loss minimizing output
Suppose that thedemand curve for corn is downward-sloping but that the supply curveis perfectly price inelastic at a quantity of Q* once the corn isharvested. Furthermore, assume that the equilibrium price is $ 5per bushel.
Explain the principles of microeconomics apply to other country. Describe any differences or special situations.
Continue to assume that C = 400 + 0.75 (Y - 100), I = 100, and NX = 100. But the government now increases spending from 100 to 150, how much is the new Y in the goods market equilibrium?
Assume that nation has a labor force of 100 people. In January, Amy, Barbara, Carine, and Denise are unemployed, in February, those four find jobs, but Evan, Francesco, George, and Horatio become unemployed.
Two oligopoly company are in the process of estimating their marketing strategies. Firm 1 can generate estimated profits of $10 million from strategy A
If we assume that all firms in a perfectly competitive constant cost industry are identical, we conclude that, in the long run, product price will exactly equal the firms' minimum average total cost. Explain why this is true using supply and deman..
Mmachines of Newspaper vending are designed so that once you have paid for one paper; you could take more than one paper at a time.
In spite of significant price increases for gasoline in the last two years, the amount of gasoline consumed has not decreased a lot--does this mean that gasoline is an exception to the law of demand or is there some other reasonable explanation?
Many would consider the US Postal Service a publically good. Is this assumption valid.
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