What is importance of financial markets for the productive capacity of the economy.?

Q: Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer…

A: Utility function shows the relationship between units of goods and utility derived from the goods.

Q: Rhea is determining how many gallons of milk (M) and loaves of bread (B) to purchase. Use the…

A: MU, marginal utility of the good is the additional utility derived from consuming an additional unit…

Q: Chuck and Diane are both currently consuming 15 apples and 3 bananas each week, which we can call…

A: In financial matters, the marginal rate of substitution (MRS) is the rate at which a buyer can…

Q: Why are nation-states sometimes willing to compromise their sovereignty in order to gain or maintain…

A: 1) let We have show that While countries lose some sovereignty over their own territory, they often…

Q: Using a 15% MARR, $10,000 is equivalent to all of the following except: O a. $8,696 one year ago O…

A: To solve this question, we have to calculate the equivalent value of $10,000 one year ago, two year…

Q: What is an example of calculating IRR?

A: For calculation of IRR We utilized the method of interpolation to compute IRR. This requires the…

Q: Suppose output per worker in a country has grown at the same rate as technology over many years.

A: Growth refers to sustained increase in real GDP per capita of a country over long period.

Q: P = 225 P = 50+ 3Qs How much is producers' surplus generated when this market operates in…

A: Equilibrium in the market occurs where quantity demanded equals quantity supplied.

Q: Part B (Answer any two questions) 3. a. What do we mean when we say the the BOP in Total is in…

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

Q: In the long-run, the representative firm in monopolistic competition tends to have: Select one: A…

A: A market structure characterised by monopolistic competition has numerous large vendors, each of…

Q: omics 1B Jan22 Y1 S2 The sale of South African Airways will affect which component of aggregate…

A: Aggregate demand is calculated by taking the sum of its four components: consumption, investment,…

Q: Question 3 Person A and Person B produces purses and wallets. The production possibilities frontier…

A: The production possibility frontier represents different combination of goods which an economy can…

Q: An indifference curve illustrates ... how consumers are indifferent about the location of their own…

A: The quantity of units consumed by two products is displayed on an indifference curve. It explains…

Q: Mary makes year-end deposit of $4500, the first year increasing the year’s deposits by 8% until the…

A: According to guidelines we can attempt only first question.  Value of deposit = $4500 Interest rate…

Q: Carefully explain what is happening in the market for leather belts. Indicate the impact if any on…

A: Demand curve shows association between quantity demand and price. Similarly, Supply curve depicts…

Q: 14) George Springer will make $5,000 monthly payments into his Canadian Retirement account. At…

A: Monthly payment to retirement account = 5000 In retirement, he will receive 10,000 per month for 15…

Q: 1. What does the Law of Demand state?

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

Q: how the Federal Reserve Board (Fed) and Congressional legislation can influence the quantity of…

A: The size of a nation's workforce, inside a given all out populace, relies upon two factors: the…

Q: X-Variable: Netflix Subscriptions 10 40 60 70 Y-Variable: Red Box Rentals 50 30 20 20 Point A B C D…

A: The slope expresses how quickly the dependent variable changes when the independent variable…

Q: Consider the following production function for a firm:  y=(x1-1)(x2-1), if x1≥1 and x2≥1; and y=0,…

A: The law of supply, simply states that there exist a positive relationship between price and the…

Q: A profi-maximizing monopolist will set its price Select One: a) along the elastic portion of its…

A: A monopolist is an individual, gathering, or organization that controls all of the market for a…

Q: Derive two LM curves, the first when money demand is very sensitive to the interest rate, and the…

A: LM curve is a curve that shows all the possible sets of income levels (y) and the rate of interest…

Q: Pedro made 24 payments of P200,000.00 each, and all payments are made at the beginning of each year.…

A: Given 24 payments made at beginning of each year = 200,000 P Time = 24 years Interest rate -= 18 %

Q: QUESTION 11 A means that the government is spending as much as what it is collecting in taxes.…

A: A  _ means that the government is spending as much as what it is collecting in taxes.

Q: Explain why each of the following statements is True, False, or Uncertain according to economic…

A: Demand refers to the quantity of the goods demanded by the consumers at a given price during a given…

Q: Consider the following simplified scenario. Imagine that the Australian national rugby union (for…

A: Regular tickets demand :  QF(P) = 120 – 2P Concessional tickets demand :  QC(P) = 80 – 2P Marginal…

Q: Below are two pairs of almond production cost curves showing technological change in irrigation from…

A: Optimal level of production is achieved at the point where marginal revenue equals marginal cost .…

Q: 3. a. What do we mean when we say the the SOP in Total is in Deficit or The BOP in Total tions were…

A: Since you have asked multiple question, we will answer first question for you. If you want any…

Q: Today, an investment amounts to P8,000,000. What was the value of your investment in 2010 of t

A: Investment value today = 8,000,000 P Interest rate = 8 % Time = 2022 – 2010 = 12 years

Q: PRICE (Dollars per unit) 200 180 160 140 120 100 80 60 40 20 0 #+ cx xo B + E M 0 20 40 60 80 100…

A: Price Elasticity of Demand: Elasticity of demand  = ΔQd/ΔP = {Q2−Q1/Q1 }÷ {P2−P1/P1} Demand is…

Q: How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 41 years…

A: The number of periods can be computed based on future value (FV) and present value (PV). The formula…

Q: 1. Consider an economy described by the following equations; Y = C + I + G +NX Y = 5,000 G = 1,000 T…

A: The national savings rate is the Gross domestic product that is saved as opposed to spent in an…

Q: Because neoclassical economists assume that people are rational decision makers, they Multiple…

A: Behavioral economics  This hypothesis accepts that individuals, given their preferences and…

Q: • The price of Coke (Pc) is $0.50/can. • The price of Pepsi (Pp) is $1.00/can. Based on his budget…

A: The utility preferences are perfect substitutes  MRS = (dU/dC)/ (dU/dP)  MRS = 2/3 relative price…

Q: The government decides to regulate the labor market. Assume the demand for labor is inelastic,…

A: Since you have asked multiple question, we will answer first question for you. If you want any…

Q: Consider an economy with dynamics captured with the following graph: k ke+1 = $(k₂)

A: In the given diagram we are given 3 steady states where the given K_t+1 curve intersects the 45'…

Q: pose the utility function for goods x and y is given Utility = U(x,y) = 2x+y Suppose price of…

A: Utility function shows the functional relationship between the utility and goods consumed.…

Q: An individual deposits an annual amount into a savings account that pays 6% interest compounded…

A: Since the loan is payable in 6 years which means that the individual will have to make payment for…

Q: The so-called Lake Wobegon effect, where everyone in a group claims to be above average, illustrates…

A: In case of Lake Wobegon Effect, a person has the tendency to consider himself as superior to others.…

Q: Consider a government that raises money in a two-good economy by taxing good 1 at a rate of t per…

A: In economics, a Theory, introduced by the American economist Paul Samuelson in the year 1938, holds…

Q: Which of the following is true of an economic theory? a. It uses complex mathematical equations to…

A: We know that It is a bunch of principles and ideas which explain the functioning of the economy or…

Q: economics question. *What were the policy responses used to combat the shortage of hand sanitizer,…

A: The COVID-19 pandemic had devastating impact on basic need products due to less supply and more…

Q: Consider how the COVID-19 pandemic has caused major disruption in global supply chain affecting the…

A: The relationship between aggregate demand (AD) and aggregate supply (AS) is used in a macroeconomic…

Q: Take a look again at Figure 1 (originally from the page in the text titled "Neoclassical and…

A: The difference between real GDP and potential GDP, when both are measured in real terms, is known as…

Q: The economy is at the equilibrium shown as point a in the above figure. To restore the economy to…

A:

Q: What are the ways in which individuals or firms in the United States may protect their intellectual…

A: In United States the intellectual property laws passed by Congress are administered by two…

Q: Demand is the schedule of quantities of a good or service that people are willing and able to…

A: According to the law of supply and demand, a product's market price changes are related to its…

Q: QUESTION 1 Suppose we know that the price elasticity of demand for organic carrots is -1.5. If a…

A:

Q: The following graph shows the Laffer curve for several tax rates (20, 40, 50, 60, 80). Tax Revenue…

A: The demand curve shows consumer willingness and capacity to purchase a good at a particular price…

Q: A tariff is O any non-tax action used to restrict trade. O a tax imposed on incomes of consumers of…

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

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.