There are some possible explanation for m2>m1 . But, Phillip Cagan defended that m1>m2 situation might arise. Would you please explain what the factors may have role in this?
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There are some possible explanation for m2>m1 . But, Phillip Cagan defended that m1>m2 situation might arise. Would you please explain what the factors may have role in this?
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- Under what circumstances money may appear as non-neutrality??? Can you explain to me?John Antonio transfers $5000 from his checking account to his savings account. How are M1 and M2 affected by this decision? a.M1 increases and M2 decreases b.M1 and M2 remain the same c.M1 decreases and M1 increases d.M1 increases and M2 increases e.M1 decreases and M2 decreasesSuppose the economy of a large nation has a defense industry, a banking industry, and apharmaceutical industry. 1-unit output of defense requires 0.6 inputs of defense, 0.2 inputs ofbanking, and 0.2 inputs of pharmaceuticals. 1-unit output of banking requires 0.1 inputs ofdefense, 0.4 inputs of banking, and 0.5 inputs of pharmaceuticals. 1-unit output of pharmaceuticalsrequires 0.1 inputs of defense, 0.2 inputs of banking, and 0.2 inputs of pharmaceuticals.If the nation wants to have surpluses of 106 units of defense production, 243 units of bankingproduction, and 216 units of pharmaceutical production, find the gross production of eachindustry.
- What do the authors mean when they state that financial intermediaries can achieve economies of scale with respect to transaction costs? A. Intermediaries can spread transaction costs across larger transaction volumes, so the cost per unit is lower. B. Intermediaries tend to specialize in certain types of transactions, so their costs are lower because they operate at lower volume than other types of financial firms.Why is the national security argument not convincing?If Mary Smith withdrew $100 from her savings deposit at Bank of America and kept it as cash, Group of answer choices M1 would increase by $100 and M2 would decrease by $100. M2 would increase by $100 and M1 would decrease by $100. M1 would decrease by $100 and M2 would decrease by $100 M1 would increase by $100 and M2 would not change.
- How can asymmetric information problems lead to abank panic?The U.S. economy borrowed heavily from the British inthe nineteenth century to build a railroad system. Whydid this make both countries better off?1. Why did JCB originally enter India via a joint venture with Escorts? What were the advantages of that joint venture? What were the limitations and risks?2. In 1999, JCB took a majority stake in its Indian joint venture with Escorts. In 2002, it acquired all outstanding shares, establishing a wholly owned subsidiary. Why did JCB pursue this strategy? What were the benefits? Can you see any potential downside?3. For years, India placed significant limits on inward FDI in order to encourage the growth of an indigenous industry. Why do you think it relaxed many of those regulations at the end of the 1990s and early 2000s? What were the benefits to the India economy? Was there a downside?