Describe how the federal reserve can affect the money
Describe how the Federal Reserve can affect the money supply and interest rates.
•Identify and describe the effects of a change in money supply on the interest rate.
•Describe the money multiplier and the money creation process.
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An asset cost $120 today. you will hold it for one year then sell it. there is a 25% chance that it will be worth $100 in a year, 25% chance it will be $115 in a year and a 75% chance it will be worth $140.
Using the aggregate demand-aggregate supply model, explain how the depreciation of the US dollar in terms of foreign currencies would affect the economy.
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What are the main characteristics of an oligopoly? Give an example of an industry with an oligopolistic structure. What are the firms in this industry?
Suppose a consumer has the utility function u(x;y) = xy1/2. Suppose the prices and income are given as Px = $2;Py = $3; I=$900:
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