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Suppose that a lottery winner deposits $5 million in cash into her transactions account at the Bank of America. Assume a reserve requirement of 20 percent and no excess reserves in the banking system prior to this deposit. Show the changes on the Bank of America balance sheet when the $5 million is initially deposited.
Supposed you own a barbershop/saloon. You are considering lowering the price of either haircuts or alcoholic drinks. The actual elasticity of demand for haircuts o 1.36 and for alcoholic drinks is 0.62. which price should you lowers? Explain
Suppose in the first quarter of the year, Real GDP was $400 billion; in the second quarter it was $398 billion; in the third quarter it was $399 billion; and in the fourth quarter it was $395 billion. Has there been a recession? Briefly explain how e..
The evolution of religious and intellectual authority from the end of the middle ages to modernity Europe’s changing relationships with the rest of the world. The varying and contradictory ways Europeans have conceived of and reconciled freedom and p..
Calculate real growth per capita in the following countries
Compared to their levels in 2003, the poverty line has ________ and the minimum hourly wage has ________.
Suppose economy starts with GDP at potential, the real interest rate and marginal product of capital both equal to 3% ad a stable inflation rate of 2%. Analyze the effect of this shock in IS/MP diagram. What policy response would you recommend to fed..
Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?
Give two examples of externalities connected with consumption and saving that can be used in arguing for policies aimed at increasing U.S. personal saving. Explain why they can be used that way. Explain what a traditional I.R.A. is. Explain how it in..
President Bill Clinton assigned his wife to task of developing a national health insurance plan to increase availability of medical care for poor. How would one determine opportunity cost of proposal.
In a recent study it has been estimated that the own price elasticity of demand for a special type of U.S. manufactured automobile tires is - .75, while the income elasticity of demand is 1.1 and the cross price elasticity of demand with respect to f..
Demonstrate, using supply and demand analysis, the effect on the equilibrium price and quantity of new hybrid automobiles when the following occurs.
If B accepts, the division is implemented. If B rejects, each player obtains their outside option. Assume that if a player is indifferent between a proposed dividsion and his or her outside option, then the player accepts the division.
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