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1- Why is a fractional reserve banking system so unstable?
2- Describe two ways in which the government regulation has made the fractional the fractional reserve banking system possible.
3- Make sure you explain how the fractional reserve system is brought about,
4- Also, how would a complete free market with regard to the monetary and banking system (i.e.., no government fiat money, no federal Reserve, no federal deposit Insurance Corporation, and no regulations of the banking and monetary system whatsoever) eliminate the fractional reserve banking system?
5- Finally how does the government directly and indirectly create inflation? Make sure to explain all the responses and answer all parts to the question.
Topic or concept that relates to managerial strategy. For example, economies of scale, diseconomies of scale, barriers to entry, techniques to combat shirking, competition and antitrust issues, price discrimination.
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Industrial countries are not usually involved in currency bailouts since they are not likely to be affected by the devaluation of another country's currency.
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What are procyclical industries? Countercyclical industries?
1. in problem 1 if charlies utility function were x5axb if apples cost 70 cents each and if bananas cost 10 cents each
Illustrate your discussion with diagrams and economic models to enhance your discussion.
As long as all resources are fully employed and every firm in the economy is producing its output using the best available technology, the result will be efficient.”Do you agree or disagree with this statement? Explain your answer.
If the Federal Reserve buys a $10,000 government bond from an individualin the economy, what is the initial effect on the money supply? What is the ultimate effect on the money supply?
Pretend that you are an editorialist, and write an editorial considering whether or not you believe that monopolies should be illegal and defend your argument using pertinent economic theory.
Suppose that the MPS in an economy is 0.4, and the government would like to decrease aggregate demand by $50 billion. How could the government accomplish this by increasing or decreasing government expenditures? How could the government accomplish th..
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