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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The Fed earns enough revenue so that it never has to grovel before a congressional appropriations committee for funding. What purpose is served by this fact?
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In spite of the fact that firms do not make payments on resources they own, these resources still have an opportunity cost. How is this possible, and
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.
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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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