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The FED is more likely to use the discount rate and the open market operation for short-term money supply management rather than the reserve requirement. Why?
Suppose you work as research economist at the EPA. There are two firms that operate in a perfectly competitive marker. This implies that each has the same marginal benefit curve, which in this case is horizontal at MB= $100. Each of the firms, howeve..
The Canadian economy is facing an inflationary gap. What policy tool would you use to eliminate the gap? Explain and illustrate the scenario and your solution using the AE model.
The so-called "recognition lag" associated with fiscal policy is a result of how slowly the U.S. Congress moves. The Social Security program is a retirement system where payments to retirees come from their previous contributions. The more progressiv..
Suppose you start telling your friend about the Price and Wolfers finding that NBA referees appear to be racially discriminatory. Your friend looks at their data, and (correctly) finds that white referees call fewer fouls per 48 minutes on black play..
The manager of Green Chemical Co. has been informed that this year’s production target Q for organic fertilizer (in millions of tonnes) is 20. The manager is asked to allocate the production across the company’s two plants. How should the manager all..
"Looking ahead to next year, the future looks very bleak indeed." The speaker was Sonia Rice, president of Consumer Goods, Inc. "Revenues are projected to be down by 7.3% and our costs (especially fuel and raw materials) are increasing monthly. What ..
The demand function for a firm’s product is Q = P!3. The firm’s marginal cost of production is constant at MC(Q) = 12. Using your answers to (a) and (b), what is the firm’s profit-maximizing markup? (Justify your answer carefully. Do not forget about..
A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $20 per hour per employee. Each employee identifies an average of 3,600 potential leads a week from a lis..
Japan exports manufactured goods to the rest of the world and imports raw materials (like food and oil) in return. Please analyze the effect of the following developments on Japan's terms of trade. You will find relative supply and relative demand cu..
Explain demand schedule and demand curve, and how they are related? Why does the demand curve slope downward?
The ability to think strategically and make choices based on solid analysis and evaluation, in order to capitalize on achieving optimal results when applying limited resources of the firm, are at the core of this strategic initiative plan. How do org..
In a market for car insurance, which of the following are examples of statistical discrimination?
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