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1. How does an increase in the currency-deposit ratio affect the money multiplier? What is the effect of an increase in the reserve-deposit ratio? Explain the direction of changes in both cases in terms of bank balance sheets and the ability of banks to respond to these changes.
2. “In order to keep national income stable, the Fed has to purchase government securities whenever interest rates rise.” Comment on this statement with the help of an IS-LM diagram. Consider two separate cases of interest rate increases and compare Fed policies in each.
Would warehouse operators insist on owning their own trucking companies What coordination and control problems and contractual hazards would these companies encounter What organizational form would warehouse operators and truck hauling companies a..
What is absolute advantage What is comparative advantage Is itpossible for a country to have a comparative advantage in producinga good without also having an absolute advantage
assume the economy is at short-run equilibrium and is in a slump. ceteris paribus what would you expect to happen to
A company is considering purchasing a copy machine. The information is given : Investment cost $30,000 Expected life 5 year Market salvage value -$2,500 (negative means that there is a net cost to dispose of an asset) Annual receips $23,500 Annu..
What is the difference between average total cost and average variable cost
Suppose that Joe enjoys and repeatedly does stupid things like getting heavily into debt and insulting police officers. Do these actions constitute systematic errors? If he gets what he wants each time, are his stupid actions even considered to be er..
Find and expression for the marginal rate of substitution (MRS x,y ) at any point (x, y). Suppose x = 3 and y = 2, what is the MRS x,y ?
Airphone, Corporation Produces cellular telephones at a processing cost of $47 each unit. The firm manufactures an average of 250 phones per week and has a yield of 87 percent good-quality phones
question on 4 different graphs illustrate what happens to equilibrium price and quantity in the market for orange juice
pricing strategy varies significantly across different market structures. the pricing guidelines in a monopoly market
Lightweight personal locator beacons are now available to hikers that make it easier for the Forest Service's rescue teams to locate those lost or in trouble in the wilderness.
The kinked demand curve describes price rigidity. Explain how the model works. What are its limitations? Why does price rigidity occur in oligopolistic markets?
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