1. If the reserve ratio is 10% then calculate any excess reserve. 2. If the bank decides to loan out the excess reserve then how much money supply that excess reserve can create?

Q: According to the CPI the inflation rate last year was 4.5%. Mariette's income increased by 5%. What ...

A: According to the CPI, the inflation rate last year was 4.5%. Mariette's income increased by 5%. What...

Q: QUESTION 2 An increase in the nominal GDP by 6% can correspond to a decrease in real GDP by 3% and a...

A: The total market price of all product and services generated during a country's economy over a parti...

Q: 16. How prices allocate resources Suppose that there are three beachfront parcels of land available ...

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A: Total revenue is the total receipts a dealer can acquire from offering labor and products to purchas...

Q: The Mini-Case "An Upward=Sloping Long-Run Supply Curve for Cotton" shows a supply curve for cotton. ...

A: Supply in economics refers to the amount of a resource that firms, producers, labourers, financial a...

Q: Aside from the few years during Clinton's administration, what is the state of the national debt? Se...

A: In the United States, government has changed based on electoral system due to which different govern...

Q: The inverse supply equation for clay pots is P = 0.5QS + 1; the inverse demand equation is P = –2QD ...

A: P = 0.5QS + 1 -------> Inverse supply equation => QS = (P-1) / 0.5 =>QS = 2P - 2    -------...

Q: u are hired by the government to evaluate the impact of a policy change that affects individuals but...

A: Difference in-differences approach endeavors to quantify the impacts of an abrupt change in financia...

Q: Consider a fictional price Index, the College Student Price Index (CSPI), based on a typlcal college...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: draw a general demand curve and label it D. Then shift the curve to the left or the right depending ...

A: 13. Demand simply refers to a customer's desire to purchase goods and services without hesitation an...

Q: In the mean-standard deviation graph, the line that connects the risk-free rate and the market portf...

A: I have solved the questions below using CAPM

Q: (a) A man bought a Ford vintage car for PhP 210,000 on installment basis at the rate of 12% compound...

A: Here we calculate the followings terms by using  the given information and conclude the statements s...

Q: The marginal benefit curve for a public good is obtained the same way as the marginal benefit curve ...

A: Marginal Benefit Curve is a downward sloping curve which shows the inverse relationship. i.e. with t...

Q: How is the market demand curve determined? O by subtracting the individual demands curves from the s...

A: Demand is referred to as the amount of goods and services that a consumer is willing and able to pur...

Q: The slope of a linear demand curve is constant, but the elasticity is not. At points with a low pric...

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at ...

Q: ABC Corporation is the sole_provider of a particular service inthe country. The government has-opene...

A: Monopoly can be defined as a market structure in which there operates a single producer selling the ...

Q: Consider the production function of widget: Q= 23K"^L°.8, where Q is units of output per month, K is...

A: Given; Production Function; Q=23K0.4L0.8 where; Q= Output per unit K= Hours of capital L= Hours of l...

Q: A man who retired becomes bored with retirement and begins to look for a job.  During the time he is...

A: Unemployment means people without work are searching for a job but unable to find one.  

Q: Which is characteristic of a product with elastic demand?  A. The good is regarded by consumers as a...

A: Demand is inelastic for products which have no close substitutes eg tobacco.

Q: In a given year, a country has $150 million more in imports than in exports, has to pay $25 million ...

A: Given: (Export-Import)=$150 million Interest Payment=$25 million Work Remittances=$100 million    

Q: What are the forces driving Globlization?

A: Globalization refers to the interconnection of world through trade and technology.

Q: Exhibit 2 Price Supply P2 P1 Q1 Q2 Quantity Use Exhibit 2. Which of the following statements is (are...

A: Producer surplus is the area above the supply curve and below the price line. 

Q: 4. what do yyou undk obik? undeilbnd by relained carhing! tete K adyantages Ploughing back of,bit? a...

A: Answer: Retained earning/Ploughing back of profit: It refers to the part of the profit that is not d...

Q: What is the impact of the information revolution to your personal life?

A: Information revolution led us to the age of the internet where optical networks of communication ten...

Q: “The Security Market Line is flatter than the ‘Capital Asset Pricing Model’ (CAPM) would predict.”  ...

A: The security market line (SML) is a pictorial depiction of the capital asset pricing model (CAPM), w...

Q: Identify two financial intermediaries. What are their respective functions? What are their major rol...

A: The middlemen in the financial transactions between borrowers (firms or individuals) or lenders (sav...

Q: Why does taking a drug off a formulary increase the prices to the consumer?

A: At the marketplace, there are many pharmaceutical companies that make their medicines using differen...

Q: Suppose that Paulie and Vinny each can produce ice cream or t-shirts. The table shows the quantity o...

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific ...

Q: An outward shift of a production possibilities curve can be caused by a. planting a more profitable...

A: Answer: PPF shifts outward when the overall production capacity of the economy increases. Production...

Q: h the aid of the diagram, show and explain the effects of change on market for education with the in...

A: Education: It is both the demonstration of instructing information to other people and the demonstra...

Q: Table 24-1 The following table pertains to Cheeseland, an economy in which the typical consumer's b...

A: The economics a s a study is based upon the basic idea of scarcity, or the limit to the amount of re...

Q: Country X is a major oil exporter. It has a floating exchange rate system and has managed to maintai...

A: Given that: Floating exchange rate system fall in oil prices- from $100 a barrel to $29 a barrel

Q: the endpoint method to compute the price elasticity on D1. 10 55 D, D2 80 90 100 m point A to point ...

A: Use the endpoint method to compute the price elasticity on D1.

Q: Solve using Payback period Method with cash Flow diagram

A: Solution: Required rate of return for 40% present worth can be calculated by:  = P + F (P/F, 40%, 5)...

Q: Given that national income is 80 crores and consumption expenditure 64 crores, find out the average ...

A: National income is defined in economics as the value of goods and services generated in a country wi...

Q: When a Canadian company exports the furniture they make to the U.S., who loses? Select an answer and...

A: Correct Answer: Option (b) Canadian Consumers. This is because when all the furniture is exported to...

Q: Country X is a major oil exporter. It has a floating exchange rate system and has managed to maintai...

A: Given that: Floating exchange rate system fall in oil prices- from $100 a barrel to $29 a barrel

Q: Assume a Ricardian, constant-cost world. There are two countries, the United States and Canada. Each...

A: The Ricardian model implies that two nations produce two things using just one element of the produc...

Q: 4. About 10 years ago, the POM Pomegranate Juice brand was created by a middle-aged couple in Nebras...

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Q: COVID-19 has impacted the global economy, spreading across nations with alarming speed, infecting mi...

A: Economic recoveries are measures taken by governments to reallocate resources to aid a sector or an ...

Q: The demand schedules of three individuals (Tamer, Dina, and Assel) are shown. If they are the only t...

A: Here we calculate the market demand at price $6 by using the given information and choose the correc...

Q: Suppose that pig farming in a region is a perfectly compet- itive industry. However, one negative co...

A: In the above question, it is given that : Suppose that pig farming in a region is a perfectly comp...

Q: Competition between firms results in: a. Lower prices b. Greater output c. Less deadweight loss d. a...

A: When there are multiple businesses in a market, competition develops. The perfectly competitive mark...

Q: Decide if it is an increase (right shift) or a decrease (left shift) and write that next to the ques...

A: The supply curve shows the association between the price of commodity and quantity of the commodity ...

Q: Which of the graph/s below show/s a rise in the price of fish? Fish (pounds per year) Fish (pounds p...

A: Chicken and Fish are substitutes. If the price of chicken increases, the demand for fish will increa...

Q: A pizzeria, which operates in a perfectly competitive hospitality market, can produce pizzas if it h...

A: Answer - "Thank you for the submitting the question.But, we are authorized to solve only 3 sub parts...

Q: How would you characterize RBI's forex policy

A: RBI is the central bank of India that aims to maintain a stable monetary policy in an economy and co...

Q: The price elasticity of demand is typically expressed as a positive number because: Multiple Choice ...

A: Price elasticity of demand measures the responsiveness of quantity demanded with respect to change i...

Q: The market for apples in the Okanagan Valley operates as a competitive market. Spencer and Gabriella...

A: The consumer surplus is being analyzed through the difference between the willingness of a consumer ...

Q: Let a1 and a2 denote the quantities consumed. The consumer's preferences are represented by the util...

A: We have Utility function U(x1,x2)=x1+x2            ... (1) Consumer income m=100 Price of good 1: p1...