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You are an aide for the Senate Banking Committee Chairman. He comes to you with a bill that proposes setting limits on what ATM owners can charge non-account holders, over and above what banks charge their own customers. Currently, large banks charge noncustomers an average fee of $1.35 per transaction in addition to the fees the customer's own bank imposes. The Senator asks you to look at a proposal that would place a $0.50 cap on the fees ATM owners can charge noncustomer for accessing their money. If this legislation were enacted, what would be the likely effects?
How would the value of output produced at an American-owned factory in the United States and a foreign-owned factory in the United States be treated in GDP accounting?
According to The Tax Foundation, an independent tax policy research organization, “the first U.S. state to levy a gasoline tax was Oregon, which enacted a 1-cent per gallon tax in February 1919. Draw a supply and demand graph for gasoline in 2006. A..
Analyse the effects of the following events in the loanable fund market diagram where we have (real) interest rate (r) on the vertical axis and the quantity of loanable fund (Q) on the horizontal axis. An increase in government purchases. A decrease ..
In the late eighteenth century, the price of bread in New York City was controlled, set at a predetermined price above the market price. Draw a diagram showing the effect of the policy. Did the policy act as a price ceiling or a price floor?
If actual inflation exceeds anticipated inflation, who will lose purchasing power, and who will gain? How does unanticipated inflation harm the country? As part of your answer, include how you and your employer would both be affected.
Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes): The company has predicted a sales increase of 7 percent. Assume Fire pays out half of net income in the form of a cash dividend. Costs and ass..
Joe’s utility function is U(Y,N): N=leisure and Y=w(24-N)=income, and leisure is normal good. Following a wage increase, illustrate the income and substitution effects such that Joe increases his labor supply.
q1. following are observations on the market cost and the quantity of good x produced and consumed in three different
Your friend's monthly demand for minutes of calling is given by the equation 50, where p is the price of a minute.
Let's take a simple example of two countries and two goods. Country 1 produces 10 units of Wine and 5 units of cloth in 1 hour. Country 2 produces 4 units of wine and 1 unit of cloth in 1 hour. Who has absolute advantage and who has comparative advan..
How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance?
q1. how was de beers able to control the world price of diamonds over the past several decades even though it produced
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