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The economy is operating beyond the full employment output level, thus producing rapid rise in prices of goods and services. The Fed is concerned about high inflation rates. The curb inflation, the Fed shifts to a more restrictive monetary policy by selling government bonds. Explain the transmission of restrictive monetary policy in your own words.
The financing of a government deficit increases interest rates also, as a result, reduces investment expenditure.
Japan's rapid growth pushed its real GDP per capita above that of the United States. Growth rates in follower nations such as South Korea and Hong Kong averaged about 10 percent per year.
An economic system, in which economic decisions are controlled by the internal interaction of supply and demand, is known as a Illustrate what.
Compute another firm in a competitive industry that faces a market determined price of $25. the firm is producing 10,000 units of output, and average total cost, which at its minimum value, is $25. Answer part a for this firm
Given the experience of the last several years, Elucidate how has the valuation of dot.com changed.
Illustrate what risks do you face. Upon inquiry at your bank, you find that the forward price for a September contract to buy dollars is 10SKr per dollar. How might you hedge your exchange-rate risk for the first year.
Illustrate what do you suppose would happen to the price and quantity of peanut butter as incomes fall during an economic recession.
What does the change in prices after a significant change in interest rates say about the relationship of price and interest rates.
Illustrate what happens in the long run when the patent expires also other firms are free to use the technology.
During World War II, both Germany and England had plans for a paper weapon: they each printed the other's currency, with the intention of dropping large quantities by airplane. Explain why might this have been an effective weapon.
Suppose that the government imposed a $1 tax each time someone used an ATM.
Which of these same curve would shift as a result of the per-burger tax. Curves average fixed cost,marginal cost would shift as a result.
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