Suppose that you are a bank with the following: • $200 of capital, and $2,000 of deposits. In this economy, the reserve requirements are equal to 7%, and cash drain is equal to 3%. What is the total amount of loans this bank will lend out (in dollars)?

Q: You bought an antique car three years ago for $500 000. Today it is worth $650 000.(a) What annual i...

A: Time (t =) 3 years;    Principle (P) = $500,000   Worth after 3 youlf x= $ 150,000

Q: Briefly define the terms in 30 to 50 words each: 1: Stagflation, 2: Depression and 3: Recession

A: Stagflation: As we know that stagflation is considered as a type of economic cycle in which both inf...

Q: At the profit-maximizing output level, the slopes of the revenue and total cost curves are not equal...

A: The correct answer is given in the second step.

Q: 1. After the completion of the Associate Degree (first 2 years of college education), you have a cha...

A: Human capital refers to the economic value that a worker adds through the skills and experience acqu...

Q: An investor has decided to commit no more than $80,000 to the purchase of the common stocks of two c...

A: The optimal price is the one that maximises the seller's overall profit. When a price is set too low...

Q: Analyse how protectionism can affect consumers in a country

A:   Meaning of Trade: The term trade refers to the situation under which the products and goods are tr...

Q: Exports of goods and services $652 Imports of goods and services $734 Net increase in U.S. holdings ...

A: Calculation of current account balance: Current account balance = (Exports of goods and services - I...

Q: Please explain what is meant by externality, then give an example of an externality case positive an...

A: Answer 1 Externality is the cost or benefit that the market transaction brings to the third party. I...

Q: The Policy Trilemma states that a country or a monetary union cannot pursue the following three poli...

A: The Policy Trilemma or Impossible trinity states that all the three goals cannot be met at the same ...

Q: What's the primary role of politics and governance as a driver of Globalization?

A: Globalisation:- The term "globalisation" alludes towards how business and innovation has created the...

Q: Refer to the accompanying figure to answer the next three questions, Price P3 P2 P1 37,500 50,000 68...

A: Please find the answer below.

Q: Suppose we alocate a foxed supply of a depletable resource between two periods in a dynamically effi...

A: The demand function shows the inverse relationship between two variables that are price and quantity...

Q: 4. Solve for the Ed and derive the appropriate classification for this hypothetical product: (Show y...

A: Average formula of elasticity of demand is Ep = ∆Q∆P×P0 +P1Q0 +Q1

Q: What is monopolistic competition?

A: The measure that depicts the way firms are being categorized and differentiated based upon the types...

Q: Suppose we allocate a fixed supply of a depletable resource between two periods in a dynamically eff...

A: Given information P=7-0.46q 2 period consumption Period 1 =q1 period 2=q2 Marginal cost=1 Total supp...

Q: One of the tasks of a Financial System include providing affordable loans to all consumers and firms...

A: Allocation of savings into channels of investment in the economy is being done by the financial syst...

Q: Which of the following best describes a microeconomic question? (A) What is the value of US dollar i...

A: Answer: The right answer for the above mentioned statement is option B: Should a particular firm ent...

Q: Is it possible to solve this question for an industrial economics?  How can the cross elasticity of ...

A: The Cross elasticity of demand is the proportional change in the quantity of X good demanded resulti...

Q: Suppose that virtually everyone in the United States decides to take life a little easier, and the l...

A: Below is the given information: The fall in average workweek = 25%

Q: How does drug addiction affects microeconomics?

A: Microeconomics is one of the major branches of economic which is concerned with the study of individ...

Q: What are some of the uses to which labors tandards are put?

A: Labor standards refer to standard conventions relating to workers, such as basic worker rights, work...

Q: Say you were interested in maximizing U = U(x,y) with the usual budget constraint, M = Px*x+Py*Y. Ex...

A: Given,  Utility function : U=U(x, y)Budget Constraint : M=Px*x+Py*y

Q: Is Social Security expected to be around when you retire? Write a paragraph of at least 100 words ex...

A: Social security is defined as a federal program under which retirement benefits are provided to the ...

Q: Given cost and price (demand) functions C(q)= 110q + 44,600 and p(g) = - 2q + 860, what is the margi...

A: p(q)=-2q+860TR=p x q     =(-2q+860) x q     =860q-2q2MR=860-4qNow, at production level of 55 items,M...

Q: der the Exchange Rate Mechanism of the European Monetary System, when the British pound depreciated ...

A: When the British pound depreciated against the german mark, the cental bank of germany was required ...

Q: Which measures the changes in the prices of a "market basket" of some 100 goods produced by typical ...

A: Price index is defined as the average of a price compared to given class of goods and services. They...

Q: Marijuana is sometimes estimated to be California’s largest cash crop. It is not included in estimat...

A: Marijuana is sometimes considered to be California’s largest cash crop. It is not included in estima...

Q: plicies to lower the natural rate of nemployment include mandated prison sentences for drug dealers....

A: Natural rate of unemployment includes the structural and frictional unemployment. There are sufficie...

Q: Can Huawei Overcome Roadblocks in its Quest for Global Markets? Huawei Technologies Ltd. (Huawei) h...

A: International trade is the branch of economics concerned with the exchange of goods between countrie...

Q: If a price floor is lower than market equilibrium...   a. Demand will be greater than supply and the...

A: Price floor is the minimum price that must be paid to sellers.

Q: Consider a firm that produces output (y) using only two inputs (A and B). The firm has a perfect sub...

A: Two inputs are perfect substitutes when only one of them is enough to produce output.

Q: 1. What are the benefits and consequences of implementing tariffs?

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

Q: The type of monetary policy that is used in Canada, New Zealand, and the UK is   Question 20 option...

A:  The monetary policy of Canada, New Zealand and UK aims to target the inflation with maximum employm...

Q: A first year student estimated a linear consumption   function   and   found   out   that Ct = 200 +...

A: Income refers to the source of livelihood which gives the incentive to workers. It means the people ...

Q: Inflation rates, like most statistics, are imperfect measures. Can you identify two ways that the in...

A: A currency's purchasing power depreciates with time, known as inflation. A currency's purchasing pow...

Q: The following table shows the streams of income produced by several different assets. In each case, ...

A: Returns refer to the sum or percentage of sum that investors or depositors of a certain sum of money...

Q: The supply and demand curves for a product are given by the following equations: P = aQs +b and P= c...

A: Only Part (c)  has been answered as per the question.   Given information Demand function P=cQd+d Su...

Q: why the consumption of non durables relatively smooth as compared to durables

A: Durable goods are basically considered as those goods which have the long life value. And can be use...

Q: If the dollar depreciates relative to the Swiss franc   Question 16 options:   a)  Swiss chocolat...

A: When the dollar depreciates against swiss franc, the exports of US become cheap in foreign market an...

Q: 1. A factory produces 1,500 electric machines per annum. The variable cost per machine is Rs. 100. T...

A: Marginal cost is the change in total cost or total variable cost per unit change in output. 

Q: Consider a utility maximizing consumer who generates utility according to the following utility func...

A: Given  Utility function: U = ln(k)+s           .... (1) Price of good k is pk and price of good s is...

Q: More and more global business firms are becoming stateless corporations. Do you think this may benef...

A: Multinational corporations conduct business in at least two countries. A multinational corporation i...

Q: 2. Below is a tabular data of price and quantity demand and quantity supply for banana que. 10 40 20...

A: P 5 10 15 20 25 Qd 50 40 30 20 10 Qs 10 20 30 40 50 [a] To solve the demand and supply equati...

Q: 21. Under an exchange-rate targeting rule for monetary policy, a crawling peg   Question 21 option...

A: The central bank uses interest rate changes and direct foreign exchange interventions to try to ensu...

Q: Suppose that you are a bank with the following: $200 of capital, and  $2,000 of deposits. In this ec...

A: Given the capital = $200 Deposits = $2000 Reserve requirement = 7% Cash drain = 3%

Q: During the Cold War the major effect of American foreign policy was the protection of Democracy abro...

A: The technique of "containment" is most popular as a Cold War international strategy/foreign policy o...

Q: Calculate the capitalized cost of an equipment maintained at a rate of 6% every year for P10,000, re...

A: Capitalized value represents the current worth of an asset. Capitalized cost is an expense incurred ...

Q: Scenario: Alex, an entrepreneur, operates a called business "Fitness for Life", providing physical c...

A: According to the question given, Alex is an entrepreneur who owns a business called "Fitness for Li...

Q: a) State on thing that would cause market supply to increase (cause the suppl to shift to the re  (...

A: The curve that depicts various quantities of goods and services being supplied at different levels o...

Q: device that cost 50000 at the start of the year lose 10% of its value each year. find out how much

A: It is given that  Present value = 500000 Reduced value = x Rate of depreciation = 10% p.a. Number of...