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The tools of monetary policy for altering the reserves of commercial banks are the
a. tax rate, transfer payments, and level of government spending.
b. consumer price index, inflation, and unemployment rate.
c. public debt, budget surplus, budget deficit, and interest rates.
d. discount rate, reserve ratio, open market operations, and term auction facility.
The law of demand states that, other things equal, an increase in
Name at least one reason why an insurance company might set a deductible. Explain when can forcing everybody to buy full insurance at market rates help everybody?
During World War 2 gasoline and other consumer goods were in short supply on the home front so that maximum resources could be diverted to the war effort. In order to cut back on the consumption of these many products, rationing coupons were issued t..
Explain using a diagram how a tax cut in period two affects consumption in both periods. Assume that average consumer does not believe that he/she or anyone in family will ever have to pay higher taxes in future to offset current cuts.
Why would a tax credit for mortgage intrest be worth more to lower income families than a deduction? Would you favor changing the benefit from a tac deduction to a tax credit? What other changes might you want to make at the same time? WHY?
Suppose that the Thai Baht is trading for $0.02, inflation in the US is 3% and inflation in Thailand is 1%. What must happen to the exchange rate in order for the purchasing power parity condition to hold?
q.the long-run cost function for leanns telecommunication firm is cq 0.03q2. a local telecommunication tax of 0.01 has
Suppose that the adult population is 9,918, the unemployment rate is 6% and the labor force participation rate 71%. How many people are employed?
Compare the Euro downfall with the other major currencies of the world over? In regards with the negative interest rate they implemented.
Illustrate what is Ricardian equivalence. Mention and explain three reasons why Ricardian equivalence might not correctly describe an economy.
The banking system is a fractional reserve banking system with a desired reserve deposit ratio. Banking system is a fractional reserve banking system.
If the marginal revenue from a product is $15 and the price elasticity of demand is ? what is the price of the product?
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