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Based on the quantity theory of money, what would be the impact of increasing the money supply by 25 percent?
Show the effect in your graph, and describe the money market adjustment process to new equilibrium interest rate. What is the new equilibrium rate of interest?
How much money do you keep in cash or checkable deposits on a typical day? Under the following conditions, would you increase or decrease your demand for money?
Explain why checkable deposits resulting from new loans based on excess reserves are not likely to generate the maximum of $500 million.
Discuss what is the maximum increase in the money supply that can result from this open market transaction?
Show the impact on this bank's assets and liabilities. If the required reserve ratio is 20 percent, what is the impact on the bank's loans?
What are the basic motives for the transactions demand, precautionary demand, and speculative demand?
Explain why it is so difficult for poor LDCs to generate investment in capital. Why is the quest for economic growth and development complicated?
Give an example of how a nation's culture affects its economic system. Explain the advantages of any two of the three basic types of economic systems.
What is the difference between economic development and economic growth? Give examples of how each of these concepts can be measured.
What are some of the problems for LDCs of accepting foreign aid?
Explain which is the independent variable and which is the dependent variable for each of the following examples.
Why do you suppose that the bank was willing to sell the house to Ms. Krawiec for only $10?
Which banks can choose not to be insured by the FDIC? Briefly discuss the importance of Depository Institutions Deregulation and Monetary Control Act of 1980?
If you deposit a $20 bill into a checking account and your bank has a 10 percent reserve requirement, by how much will the bank's excess reserves rise?
Explain why a perfectly competitive firm would or would not advertise. Does a Kansas wheat farmer fit the perfectly competitive market structure? Explain.
What effect might a decrease in the demand for high definition television have on the short-run average total cost curve for this product?
How much profit will the firm earn? When marginal cost is above zero, what will be the effect on the price and output of the monopolist?
Use the following demand schedule for a monopolist to calculate total revenue. Identify the elastic, unit elastic and inelastic segments along the demand curve.
Suppose the average cost of producing a kilowatthour of electricity is lower for one firm. Explain why a single seller is likely to emerge in the long run.
Why is the demand curve facing a monopolist downward sloping while the demand curve facing a perfectly competitive firm is horizontal?
Suppose the industry equilibrium price of residential housing construction is $100 per square foot. What would you advise the owner of this firm to do? Explain.
Assuming the market equilibrium price for wheat is $5 per bushel, draw the total revenue and the marginal revenue curves for the typical wheat farmer.
How many units of output will the firm produce in order to maximize profit in the short run? At what level of output does the firm break even?
Explain the conditions under which a firm continues to produce in the short run.