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1) What policy rule do monetarists believe the Fed should follow? What are the major assumptions underlying this policy prescription?
2) What average annual inflation rate would a monetarist expect if the Fed maintained a growth rate of M2 = 10% per year for a three year period? (Assume that the monetarist felt that the long run average growth rate of RGDP was 3%)
3) Why would you expect the velocity of circulation of a monetary aggregate such as M1 or M2 to rise during periods of high interest rates and to decline during periods of low interest rates?
4) Suppose that long term interest rates in the economy were increasing due to strong economic growth and demand for loans in the world economy. Meanwhile suppose that the Fed was holding down its federal funds rate target. What would probably be happening to M2 velocity?
Find the equilibrium quantity and price. What is the total health expenditure on the services considered in the demand-supply functions?
Discuss how each of the following developments would affect the supply of the money, the demand for money, and the interest rate. For each case, describe what happens in closed economy and in small open economy. Describe your answers with diagrams.
Visit the Bureau of Labor Statistics website, and click on "Employment Situation Summary" to get the most up to date summary of unemployment in the United States.
Everyone thinks there is a problem with the United State poverty figures. The conservatives think so: The Heritage Foundation calls the figures, A Soviet-style disinformation campaign.
Find the Cantina's minimum efficient scale and its average cost when operating at minimum efficient scale and find the Cantina's marginal revenue function.
Identify three methods for solving rational expectations models and using your chosen method, find the rational expectations solution for prices (p) and output (y).
Toys unlimited LTD., must predict sales for popular adult computer game to avoid stockouts or excessive inventory charges during the upcoming Christmas season.
On the basis of historical data, Richard Tennant has concluded, "The consumption of cigarettes is [relatively] insensitive to changes in price. In contrast, the demand for individual brands is highly elastic in its response to p..
Explain why do economists believe that the CPI overstates the rate of inflation
Corporation X expects sales next year = $5,000,000. Inventory and accounts receivable will increase $900,000 to accommodate this sales level.
Elucidate how the firm can use transfer costs to lower the corporate tax burden, which is 34% in the U.S. and 30% in the foreign location.
A producer produces good y using inputs x1 and x2 according to the production function y = x1^(alpha)x2^(beta) where alpha + beta
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