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Let’s now take a look at the question of whether or not cash is dead. View the presentation “Cash Is Dead! Long Live Cash! (Links to an external site.)”.
Briefly explain this paradox: Why have people’s cash-holdings continued to rise, despite the many alternatives to cash that are now in use?
Are debit card balances part of M1? How about credit card balances? Explain each answer briefly.
Some people believe that cash will never go away, because there are some sectors of society that will continue to insist on cash for transactions. Discuss one such sector.
How markets allocate resources. Derived demand is the change in demand due to a result initiated in another market. Market changes affect the demand for resources in related markets. For the following scenario, you are given a list of products. Draw ..
Football coach Ira Blooper has just been fired as head coach at a large university. His buyout amount is $7.5 million, and Blooper will be repaid (as per his contract) in monthly instalments over the next 4 years. If the interest rate is 1% per month..
Currently in the US there is a demographic trend that has caused dramatic increases in the number of students attending universities¾the children of Baby Boomers have grown up and are ready for college. Campus housing is a fixed good (in the short ru..
Illustrate what the reason which individuals households at some time in their lives spend more than they earn and at other times save some of what they earn.
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market..
Suppose the market demand for a good is described by the demand function P = 160 - 2Q. It follows that the total revenue function relating the total revenues (TR) to the quantity sold (Q) is:
Carrot Computers and its competitors purchase touch screens for their handheld computers from several suppliers. The six makers of touch screens have market shares of, respectively, 21 percent, 16 percent, 12 percent, 18 percent, 21 percent, and 12 p..
Take a sample of thirty households from two counties A and B and collect data on their incomes for the past month. The information obtained (in thousands of dollars) and their corresponding frequencies is given below:
The rate cut was made because European nations were growing very slowly or were in recession. What effect did the bank hope the action would have on the economy.
How does the role of inflation affect decisions that you have to make? What is the unemployment rate in your local area and in your state? How does this compare to the national average and why is this rate so important to evaluate?
Explain the unemployment rate in Tappania is higher now than is has been in 50 years. Can both of those statements be true at the same time.
What will be the impact of a fiscal expansion in a large economy like the U.S. on aggregate income, the exchange rate, investment, trade balance and interest rate? Assume that the large economy in question has aborting exchange rate.
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