. The opportunity cost of holding money rather than bonds is the rate of interest earned on bonds. forgone liquidity. the price level. forgone consumption. zero — there is no opportunity cost of holding money.

Q: 3. The monetary transmission mechanism in an OPEN economy is more complicated than it is in a closed...

A: The mechanism of the monetary transmission in a closed economy is far easier to operate as compared ...

Q: Which organization meets regularly to establish rules and settle disputes related to international t...

A: International trade, commercial transactions between countries that take place. Consumer goods, such...

Q: Which of the following statements is true in comparing regular monopoly with perfect price discrimin...

A: A monopoly market is characterized by the presence of a single seller and a monopolist produces that...

Q: Q 3::: Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small ...

A: The law of supply is an important microeconomic concept that derives the positive correlation betwee...

Q: When you invest your money in the stock Market, the original investment is called the .................

A: When an individual earns income by serving as labor or employee, he has two ways to use that income,...

Q: Suppose that a perfectly competitive firm's total cost function is TC = q? + 20q+ 256, where q is th...

A: In long run equilibrium, there must be zero profits. Therefore, rewriting the profit function, p = T...

Q: answers for 6,7 and 8

A: Constant returns to scale refers to situation when output increases in the same amount as the cost o...

Q: If the Japanese Yen appreciates relative to the U.S dollar, how will this impact U.S imports, export...

A: Exchange Rate: The exchange rate is the worth of domestic currency in the form of foreign currency. ...

Q: Suppose a student has monthly income of Rs 20,000. He consumes only two commoditiesSandwich and Shaw...

A: Budget line refers to the straight line which shows the amount of goods that can be purchased with t...

Q: You sell two products; Good X and Good Y. There are three types of customers based on their reservat...

A: We are going to calculate the profit derived from a mixed bundling strategy.

Q: Answer the attached question

A:   Meaning of Market Demand: The term market demand refers to the tabular form of all market products...

Q: Suppose that the market inverse demand function is p(yT)=80-yT and the firm's total cost functions a...

A: A duopoly market structure is a type of oligopoly where two firms have dominant or exclusive control...

Q: Explain two different reasons why most economists believe that a lack of petroleum never will cause ...

A: When there will be a lack of petroleum, the supply will shift to the left and hence will raise the P...

Q: Question 10.10.   The nondiscriminating pure monopolist must decrease price on all units of a produc...

A: A solitary price, non-discriminating monopoly is one in which a similar price is charged to along th...

Q: In the labor market, workers would like to receive higher wages and firms would like to pay lower wa...

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: When peice is $5 quantity demanded is $10. When peice is $2 quantity demanded is $15. Write the equa...

A: The demand function can be represents as follows: Where, Q is the quantity demanded, a is intercept...

Q: Determine which account of the Balance-of-Payments is affected the following transaction: A local co...

A: Balance Of Payment (BOP) is a statement which records all the monetary transactions made between res...

Q: Should the government fight recessions with spending hikes rather than tax cuts ? Explain.

A: Government spending and tax reductions have different multiplying effects on the economy.  

Q: “The U.S. and Mexico can gain from trade with one another by taking advantage of the low cost of pro...

A: Absolute advantage is when a country is able to produce a good or service more efficiently than anot...

Q: which one is better for a nation whether government announces lockdown or not lockdown? why?

A: We are going to answer the economic impact of a lockdown on the economy.

Q: As a result of 5 percent fall in the price of food, it's Demand rises by 12%. Find the price elastic...

A: Below is the given values: The percentage fall in price = 5% The percentage rise in price = 12%  

Q: has 10 rooms with a marginal cost of $20. During the high season, the demand equation is QH=700 – 2P...

A: Given:The demand equation during high-season:QH=700-2PHQH=10

Q: 7. Why are the following not included in national income : (a) Sale of an old car; (b) Winning of a ...

A: National Income refers to the measurement that provide information about the total addition of new i...

Q: The law of demand states that, other things remaining the same, the higher the price of a good, theA...

A: The law of demand describes that by considering all other factors being fixed, the quantity demanded...

Q: Assume, for Vietnam, that the domestic price of textiles without international trade is lower than t...

A: Vietnam has lower price of textiles than other nations.  This means Vietnam can produce textiles che...

Q: As long as marginal cost is below average variable cost or average total cost , then average variabl...

A: When MC is below AVC, MC pulls the common down. When MC is above AVC, MC is pushing the typical up; ...

Q: Over the past few years, quite a number of private loan companies have been established globally. Us...

A: The supply of the loanable funds depends on the behavior of all the savers in the economy. The highe...

Q: EXAMPLE 1.4 / HP borrowed money to do rapid prototyping for a new ruggedized computer that targets d...

A: The difference between simple interest rate is that it is calculated only on initial principal where...

Q: Is creating a monopoly necessarily a bad policy

A:   Meaning of Monopoly: The term monopoly refers to the situation under which there is only an indivi...

Q: 15. Consider a government bond with a face value of $10 000, and a present value of $9500. If this b...

A: If a government bond with a face value of $10 000, and a present value of $9500, is offered for sale...

Q: Which of the following statements is true in comparing regular monopoly with perfect price discrimin...

A: Perfect price discrimination, occurs when a firm can charge a different price for every unit consume...

Q: As a "lender of last resort" the Fed  :protects the deposits of $100,000 or less in all commercial b...

A: A lender of last resort is an institution, that offers loans to commercial banks or other depository...