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Is the LM curve flatter or steeper when the reserve-deposit ratio depends on the real interest rate than when the reserve-deposit ratio is fixed? Explain your answer in economic terms.
The money supply is $6 000 000, currency held by the public is $2 000 000, and the reserve-deposit ratio is 0.25. Find deposits, bank reserves, the monetary base, and the money multiplier.
Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage, employment, output, the real interest rate,consumption, investment.
Suppose that T = G = 450 and that M = 9000. Find an equation describing the IS curve. (Hint: Set desired national saving and desired investment equal, and solve for the relationship between r and Y, g
In the 2-period model of consumption, suppose Y1 = 200 and Y2 = 200. What would the budget constraint look like if the interest rate is 10% (draw the diagram and label the maximum amounts of C1 and
Explain what the results of such a move are for the graham cracker market. In other words, will there be a SHORTAGE, a SURPLUS, or neither created? Why?
In a fractional-reserve banking system, a bank: a. does not accept deposits. b. does not make loans. c. keeps only a fraction of its deposits in reserve. d. None of the above is correct.
Starting two years from now. Assume throughout this problem that everyone believes that taxes will indeed rise two years from now. Why would the simple Keynesian consumption function predict that th
Assume throughout this problem that everyone believes that taxes will indeed rise two years from now. Why would the simple Keynesian consumption function predict that this strategy would work?
If your uncle is maximizing his profit, what is the value of the marginal product of the last worker he hired? What is that worker's marginal product?
What happens to the quantity sold as more competitors are added to the industry? The price? What happens to consumer surplus and deadweight loss?
Evaluate the budgeting, performance measurement, and incentive systems used at Kooistra Autogroep. What changes would you recommend, if any?
What are the three kinds of growth? Give an example of each. Which kind of growth is China experiencing today? What factors did Max Weber stress were the keys to growth in Northern Europe?
What happens to the consumption of c and h if the individual's income increases to 10. Is health a normal or inferior good, or neither? What about c?
Oil prices increased by 90% during the first half of 2008 just when the U.S. recession was taking hold - in other words the economy was on a decline. How did this affect the market for air travel?
Assuming population growth rates remain unaffected, how much longer will it take Country B to double its per capita GDP level compared to Country A?
Essential for college students but they are considering halting production due to the lack of profits. The lawmakers agree and now set a price floor at $150. What would happen in this market?
What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output Q1 level is being produced?
Explain the effect of having the two-tiered interest rate structure (where students from low-income families pay less) in terms of the screening/signaling model. No graph required.
If the firm's inter¬est rate is 12%, should treated or untreated ties be purchased initially, and what is the best plan for a replacement pattern?
Which formula did you used in converting the prices to dollars at the beginning of your solutions? Why did you change the prices from dollars to cents and the end?
Explain "trade creation" and "trade diversion. Why and how is this relevant to Mexico or Canada to assess the North American Free Trade Agreement, NAFTA)?
Compute the interest rate on current Treasury securities with maturities of one year, two years, three years, four years and five years, and plot the yield curve.
Find real GDP per capita for the United States and Japan from 1900 to 2010. Divide Japan's GDP per capita by the US GDP per capital and plot the result it in Excel.
Thermos production, with thermos carafes on the x-axis (as one input) and thermos lids on the y-axis (as the second input). Assume capital is held constant.