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An economy begins in long-run equilibrium, and then a change in government regulations allows banks to start paying interest on checking accounts. Recall that the money stock is the sum of currency and demand deposits, including checking accounts, so this regulatory change makes holding money more attractive. a) how does this change affect the demand for money? b) what happens to the velocity of money? c) if the central bank keeps the money supply constant, what will happen to output and prices in the short run and in the long run? d) if the goal of the central bank is to stabilize the price level, should the central bank keep the money supply constant in response to this regulatory change? If not, what should it do? Why? e) if the goal of the central bank is to stabilize output, how would you answer to part (d) change?
Draw a graph of the market for fire extinguishers, labeling the demand curve, the social-value curve, the supply curve, and the social-cost curve.
Describe the opportunities that might be available through better use of information technology (IT) in the U.S. health care system. What might explain the system's failure to better capitalize on these opportunities
The value of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that, Suppose that the current market value is below the market clearing level.
What are the possible problems and solutions for these concerns? What could happen to the U.S. labor markets if immigration is not controlled?
Discuss the function performed by a financial intermediary in linking surplus and deficit units in the financial market. What will happen in the financial market if the financial intermediary does not exist
Consider a long-term debt you currently own (e.g., a mortgage or student loan) and discuss how you would take present value into account when deciding whether you should retire that debt ahead of schedule. Explain your rationale.
Arkansas has one of the highest numbers of STLs in the United States. In an effort to recoup the costs of dealing with the meth epidemic, twenty countries in Arkansas filed a suit in a federal district court against Pfizer, Inc., and other compani..
Explain what could happen in the future with each of these trends below and come up with three(3) more trends not listed and do the same analysis for your three additions.
Discuss all of the Pros and Cons of making the decision to buy a new car and we require to consider about macro & microeconomics and any other psychological, sociological or business concepts that may affect the decision.
Sweetgrass Radiology Labs has a fixed amount of radiology equipment. The laboratory can hire any number of radiology technicians per hour to produce radiographs, which are displayed on a screen.
Determine the direction of comparative advantage and the limits to the relative wage rate A and B are the countries, the products are S and T and A has s=6 and T=2, and B has S=15 and T=12
In doing so, she joined a long list of accomplished lawyers who have failed to pass the notoriously difficult examination, including a former governor who required four attempts to pass and a Los Angeles mayor who gave up after four tires. In the ..
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