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Assume a visitor from another nation decides to open a checking account at J & R National Bank. The visitor deposits $10,000 that is new money to the Macro Islands economy. The central bank has set a required reserve ratio of 20%.i. What is the change in the total amount that J & R National Bank can loan out? Explain.ii. What is the total amount that the bank can create? Explain.Now assume that the Macro Islands government decides to increase spending to fund new projects that will bring in more visitors. Using a correctly labeled loanable funds graph, show and explain what will happen to the demand for loanable funds.
Suppose the government implements a policy that subsidizes business investment. Explain how will this affect the relationship between investment and the interest rate.
If the Federal Reserve has set the risk-free interest rate at 8 percent, Illustrate is the proper current cost of this investment.
Elucidate using a graph why the change in real GDP is likely to be smaller than the shift in the aggregate demand curve.
If Jud offered the Krauses one price and inadvertently typed a different, higher price into the contract, can Jud be held to the typewritten amount?
All the big computer manufacturers have little "Intel Inside" logos in their television advertisement.
Explain due to a growing US economy, the overall market demand for nails will increase by 2%. Based on this information, should you plan to increase or decrease your production of nails.
Decrease costs across the board. Find out elasticities of the products and increase the price on the inelastic shoes.
How should the manufacurer respond to this competitive threat? Suggest at least two alternatives.
Draw the Edge worth Box diagram for this economy also Explicate whether the initial allocation of cheese also bread is Pareto efficient.
If amazon.com's revenue increased after it cut the price of books, dvds, and blu-rays what must be true about the price elasticity of demand for ordering these goods online?
Illustrate what additional information is needed for you to be able to compute the price elasticity of demand for DVD players.
What is the rationale behind the choice of target or acquirer, if appropriate for your opening bid and your overall bidding strategy.
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