Economics

Suppose that the Anytown city government asks private citizens to donate money t

Suppose that the Anytown city government asks private citizens to donate money to support the town's annual holiday lighting display. Assuming that the citizens of Anytown enjoy t…

Suppose that the Bank of Canada buys $100,000 of bonds and the required reserve

Suppose that the Bank of Canada buys $100,000 of bonds and the required reserve ratio is 0.25. If the O Banks have perfect information about the creditworthiness of all borrowers …

Suppose that the Bank of China wishes to maintain the value of its currency when

Suppose that the Bank of China wishes to maintain the value of its currency when measured against the US dollar. Consider the situations (a), (b) and (c) below. For each situation…

Suppose that the City of Detroit enacts a rent control law that reduces all curr

Suppose that the City of Detroit enacts a rent control law that reduces all current rents by 10%. Give the short run effects of the law: A. If the Detroit apartment rental market …

Suppose that the EPA has proposed strict controls on the amount of sulfur that d

Suppose that the EPA has proposed strict controls on the amount of sulfur that diesel fuel contains. These controls were designed to fully offset the cost of pollution generated b…

Suppose that the Fed has a policy of increasing the money supply when it observe

Suppose that the Fed has a policy of increasing the money supply when it observes that the economy is in recession. However, suppose that about six months are needed for an increa…

Suppose that the Fed has decided that it should have an activist monetary policy

Suppose that the Fed has decided that it should have an activist monetary policy in order to stabilize the level of GDP by managing the money supply. When the following events occ…

Suppose that the Fed purchases from bank A some bonds in the open market and tha

Suppose that the Fed purchases from bank A some bonds in the open market and that, before the sale of bonds, bank A had no excess reserves. a) Describe what initially happens to t…

Suppose that the Fed purchases from bank A some bonds in the open market and tha

Suppose that the Fed purchases from bank A some bonds in the open market and that, before the sale of bonds, bank A had no excess reserves. a) Describe what initially happens to t…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: % triangle v=0.5x(i-5) Su…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: % triangle v=0.5x(i-5) Su…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %?V=0.5X(i-5) Suppose tha…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Fed\'s inflation target is 2%, potential output growth is 3.5%,

Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose…

Suppose that the Federal Reserve (\"the Fed\") buys $10,000 of U.S. government b

Suppose that the Federal Reserve ("the Fed") buys $10,000 of U.S. government bonds and the required reserve ratio is 0.15. If the assumptions of the simple money multiplier hold, …

Suppose that the Federal Reserve (the Fed) conducts countercyclical monetary pol

Suppose that the Federal Reserve (the Fed) conducts countercyclical monetary policy to combat a recession by buying government bonds. Assume that the economy conforms to the Keyne…

Suppose that the Federal Reserve is concerned that the US economy is producing a

Suppose that the Federal Reserve is concerned that the US economy is producing above the natural rate of output. What could it do to return the economy back to the Natural Rate of…

Suppose that the Federal Reserve makes a $10 million discount loan to First Nati

Suppose that the Federal Reserve makes a $10 million discount loan to First National Bank (FNB) by increasing FNB's account at the Fed. Complete the following T-account to show th…

Suppose that the Federal Reserve votes in a new Chair of the FOMC and the moneta

Suppose that the Federal Reserve votes in a new Chair of the FOMC and the monetary policy (MP) reaction function changes from Policy A to Policy B as shown in the table below: Inf…

Suppose that the Federal Reserve votes in a new Chair of the FOMC and the moneta

Suppose that the Federal Reserve votes in a new Chair of the FOMC and the monetary policy (MP) reaction function changes from Policy A to Policy B as shown in the table below: Inf…

Suppose that the Incom Starfighter Facility is but one of many producing Starfig

Suppose that the Incom Starfighter Facility is but one of many producing Starfighters for the different factions found in the Star Wars Universe (thus, making the Starfighter mark…

Suppose that the Japanese yen rises against the U.S. dollar-that is, it will tak

Suppose that the Japanese yen rises against the U.S. dollar-that is, it will take more dollars to buy a given amount of Japanese yen. Explain why this increase simultaneously incr…

Suppose that the Little Varmint Undergarment Corporation is a dominant firm in t

Suppose that the Little Varmint Undergarment Corporation is a dominant firm in the market for children's underwear. The firm is currently earning large economic profits due to its…

Suppose that the Marginal Propensity to Consume (MPC) in an economy is equal to

Suppose that the Marginal Propensity to Consume (MPC) in an economy is equal to 0.75 and that you are told that investment spending descreases this year by $50. You are asked to c…

Suppose that the Phillips curve is given by where Suppose that inflation in year

Suppose that the Phillips curve is given by where Suppose that inflation in year (t-1) is zero. In year t, the central bank decides to keep the unemployment rate at 49 forever Now…

Suppose that the State Bank announces an increase in the money supply. As a resu

Suppose that the State Bank announces an increase in the money supply. As a result, people start to expect higher prices. What will happen to the short-run aggregate supply curve?…

Suppose that the State of Colorado is considering a new environmental regulation

Suppose that the State of Colorado is considering a new environmental regulation to improve water quality along the South Platte River. The regulation will require municipalities …

Suppose that the T-account for Black Rock National Bank is as follows; Assets ;

Suppose that the T-account for Black Rock National Bank is as follows; Assets ; reserves = $100,000......... Loans = $400,000 Liabilities: Deposits = $500,000 a) What is the reser…

Suppose that the Telecommunications minister of a small country is considering a

Suppose that the Telecommunications minister of a small country is considering a proposal to award an exclusive contract (monopoly) to Clear Vision Inc., a cable television carrie…

Suppose that the U.S. Department of Agriculture (USDA) administers the price flo

Suppose that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. (The price floor is officially set at $16.10 per h…

Suppose that the U.S. and Japan are both recovering from a recession, but the U.

Suppose that the U.S. and Japan are both recovering from a recession, but the U.S. is expected to recover sooner.   Therefore, the yield curve for the U.S. would have a flatter sl…

Suppose that the U.S. currently buys and produces wingdings, a fictitious econom

Suppose that the U.S. currently buys and produces wingdings, a fictitious economic good. The U.S. faces the world price, and domestic suppliers sell as many GE273: Project Page 2 …

Suppose that the U.S. currently buys and produces wingdings, a fictitious econom

Suppose that the U.S. currently buys and produces wingdings, a fictitious economic good. The U.S. faces the world price, and domestic suppliers sell as many wingdings as possible …

Suppose that the U.S. government decides to charge beer consumers a tax. Before

Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 45 billion cases of beer were sold every year at a price of $5 per case. After the tax, 38…

Suppose that the U.S. government decides to charge beer consumers a tax. Before

Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 10 million cases of beer were sold every month at a price of $6 per case. After the tax, 5…

Suppose that the U.S. government decides to charge wine consumers a tax. Before

Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 10,000 bottles of wine were sold every week at a price of $4 per bottle. After the bottle.…

Suppose that the U.S. textile industry is competitive and there is no internatio

Suppose that the U.S. textile industry is competitive and there is no international trade in textiles. In long run equilibrium, the price per unit of cloth is $30. a. Describe the…

Suppose that the UK withdrawals from the European Union following the referendum

Suppose that the UK withdrawals from the European Union following the referendum later this year and that as a result of rising prices for a broad variety of goods the UK begins t…

Suppose that the US dollar interest rate and the Swiss Franc interest rate are t

Suppose that the US dollar interest rate and the Swiss Franc interest rate are the same, 5 percent per year, but that there is a risk premium of 1 percent associated with holding …