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When the nominal rate changed the real rate usually moved in the same direction and that this “is what Taylor’s Principle requires”. Explain why it is that Taylor’s Principle requires that every time a central bank changed the nominal rate it does this in such a way that the real rate will change in the same direction.
suppose that the carnival and the circus have both come to town and are both o?ering free admission. you have 6 free
Two methods of filling cereal boxes are being compared. Both methods fill the box with the same amount of cereal on average so the company wants to select the method with the lower variance. In a sample of 31 boxes filled using method 1, the standard..
According to the five forces of the Porter's model, the organization of an industry can be analyzed in terms of its structure, conduct and performance. Discuss. Is it always true that structure causes the conduct and thus performance of an industry? ..
If a country wants to keep the domestic currency undervalued against a foreign currency:
Which of the following are reasons to expect that in a perfectly competitive market economy with no government intervention in the market for education there is an externality associated with education that makes people get socially inefficient amoun..
Tom is stuck with his friends on an island that uses coconuts for currency, but they recently discovered Wilson’s Island nearby. Tom’s Island agrees to make only one transaction with Wilson’s Island: It sells a fishing boat to Wilson’s for 15 coconut..
Show how a buyer with monopsony power sets its output, indicating the correct intersection on a fully labeled diagram. Is it correct that “a monopsonist hires fewer people at higher pay than would prevail in a competitive market”? Explain your answer..
Evaluate the fundamental arguments between Keynesians and Monetarists concerning the level of government involvement in our economy to minimize the impact and stabilize the different stages of the business cycle.
Which of the following describes the difference between the demand faced by a firm and the demand faced by an industry? the demand facing individual firms tend to be more price-elastic than those for the entire industry.
What are the terms of trade? (At what rate would you each be willing to trade?) f. Using graphs for both you and Pat, show that trade allows each of you to achieve a point on your consumption possibilities curve which is greater t..
A competitive firm’s cost of production is C(Q) = Q^3-20Q^2+125Q. The firm’s problem is to choose the value of Q> or = 0 that maximizes its profit. Draw a picture of the firm’s supply curve. You should show the exact coordinates of the points where Q..
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is su..
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