Explain what should the government do with the extra money
Assume the government is running a surplus and aggregate demand is so high that any further increases in spending will cause only inflation, with no increases in production. Explain what should the government do with the extra money?
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Find out at least one important Entrepreneur that you would consider an "Entrepreneurial Legend" and state why you consider the person to be exemplary.
Failures of O-rings on space shuttle were fairly rare, but chould be disastrous, events. If we were testing O-rings, suppose that the probability of a failure of any one O-ring is 0.01. Let X be the number of failures in the next 10 O-rings tested
Explain what does the Fisher Effect say about the relationship among the nominal interest rate (e.g., the federal funds rate) and the inflation rate?
Assume the Fed decides to increase the nominal money supply using an open market purchase. The end result of the money creation sequence of events shows a decrease in the federal funds rate.
Should they choose an expansionary or contractionary policy? What would be the consequences of doing so? Should the Congress and president engage in discretionary fiscal policy if a recession is caused by a supply shock?
The Ford Motor Company sold 500,000 Model T Fords at a price of $440 each in 1916. Henry Ford believed that he could increase sales of the Model T by 1,000 cars for every dollar he cut the price.
An airline ticket costs the same from Wyoming, Casper, to Denver, Colorado and from the Denver to Orlando, Florida. Does this make economic sense?
If a firm makes a loss in the short run, should it shut down? If no, discuss. If yes, discuss. Offer examples. Do think discussion forum is a useful learning tool for online classes.
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