Economics

Suppose that, for a certain potential investment project, the optimistic, most l

Suppose that, for a certain potential investment project, the optimistic, most likely, and pessimistic estimates are shown in accompanying table. Optimistic Most likely Pessimisti…

Suppose that, in a competitive market without government regulations, the equili

Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicoting whether eac…

Suppose that, in a competitive market without government regulations, the equili

Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether eac…

Suppose that, in a small country, the equilibrium price of corn is $300 per ton

Suppose that, in a small country, the equilibrium price of corn is $300 per ton and that the government establishes a price floor at $400 per ton by promising to buy any resulting…

Suppose that, in an attempt to entice citizens to conserve energy, the governmen

Suppose that, in an attempt to entice citizens to conserve energy, the government enacted regulations requiring that all air conditioners be more efficient in their use of electri…

Suppose that, initially, the Michigan economy is in equilibrium with no unemploy

Suppose that, initially, the Michigan economy is in equilibrium with no unemployment. The supply of workers is ES = -1,000,000 + 200w, and the demand for workers is ED = 19,000,00…

Suppose that, over the short run (next five years), demand for OPEC oil is given

Suppose that, over the short run (next five years), demand for OPEC oil is given by Q = 57.5 - .5P or, equivalently, P = 115 - 2Q. (Here Q is measured in millions of barrels per d…

Suppose that, prior to the passage of the Truth in Lending Simplification Act an

Suppose that, prior to the passage of the Truth in Lending Simplification Act and Regulation Z, the demand for consumer loans was given by Qdpre-TILSA = 14 -90P (in billions of do…

Suppose that, prior to the passage of the Truth in Lending Simplification Act an

Suppose that, prior to the passage of the Truth in Lending Simplification Act and Regulation Z, the demand for consumer loans was given by Qdpre-TILSA = 6 -100P (in billions of do…

Suppose that: S&P 500 index is trading at 2000; index stocks do not pay any divi

Suppose that: S&P 500 index is trading at 2000; index stocks do not pay any dividends; and you can borrow and lend at 5% per annum. You have an index portfolio worth $20 milli…

Suppose the Addams family monthly demand for water is similar to that of 80% of

Suppose the Addams family monthly demand for water is similar to that of 80% of the population of Erehwon. However, for 20% of the population, there is a need for much more water …

Suppose the Ajax Insurance Company provides insurance for skydivers whose wealth

Suppose the Ajax Insurance Company provides insurance for skydivers whose wealth before diving is $100,000. An accident will leave divers with a wealth of $80,000. The company div…

Suppose the Army Corps of Engineers has proposed for building six dams with the

Suppose the Army Corps of Engineers has proposed for building six dams with the social benefits (B) and costs (C) listed as follows: Dam B C Net Benefits B-C Ratio 1 40 20 2 25 10…

Suppose the Bank of Ghana decides to reduce the reserve requirement from 10 perc

Suppose the Bank of Ghana decides to reduce the reserve requirement from 10 percent to 8 percent. If an individual deposits GH¢400 with a bank, which of the following statements w…

Suppose the British demand for real estate in the United States increases due to

Suppose the British demand for real estate in the United States increases due to a booming real estate market. What would we expect to happen in the foreign exchange market, holdi…

Suppose the British economy produces two goods: laptops and books. The quantity

Suppose the British economy produces two goods: laptops and books. The quantity produced and the prices of these items for 2010 and 2011 are shown in the table below: Year Quantit…

Suppose the Busy Bee Cafe is the monopoly producer of hamburgers in Hugo, Oklaho

Suppose the Busy Bee Cafe is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this est…

Suppose the CFO of a German corporation with surplus cash flow has 1 million Eur

Suppose the CFO of a German corporation with surplus cash flow has 1 million Euros to invest. Suppose that interest rates on 1-year CD deposits in US banks are 2%, while rates on …

Suppose the Canadian and U.S. economies, on a flexible exchange rate, have real

Suppose the Canadian and U.S. economies, on a flexible exchange rate, have real growth rates of 2% and a risk premium of 1% (Canada is riskier). The Canadian money growth rate is …

Suppose the Central Bank of New Geneland decides to increase the country\'s mone

Suppose the Central Bank of New Geneland decides to increase the country's money supply by 15percentage immediately and every year for the foreseeable future. Firms and workers in…

Suppose the Coca-Cola company with the US$7.351 billion annual net income (2015)

Suppose the Coca-Cola company with the US$7.351 billion annual net income (2015) is going to project its logo during the full moon for a year. They estimate the increase in income…

Suppose the Economics Department has a graduation party for its students but as

Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade. The men are given food when th…

Suppose the Environmental Protection Agency (EPA) wants to mandate that all meth

Suppose the Environmental Protection Agency (EPA) wants to mandate that all methane emissions must be reduced to zero in order to alleviate global warming in the United States. Wh…

Suppose the European Commission is considering legislation that decreases tariff

Suppose the European Commission is considering legislation that decreases tariffs on agricultural products imported from the US. The benefit of the tariff reduction is estimated a…

Suppose the European Union (EU) is investigating a proposed merger between two o

Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the rele…

Suppose the European Union (EU) is investigating a proposed merger between two o

Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor Based on some economists' definition of the relev…

Suppose the European Union (EU) is investigating a proposed merger between two o

Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor Based on some economists' definition of the relev…

Suppose the Fed announces that interest rates will continue to rise in 2018. How

Suppose the Fed announces that interest rates will continue to rise in 2018. How would this impact the market for bonds? Would it impact demand or supply? Would it cause an increa…

Suppose the Fed announces that is lowering its target, interest rate by 75 basis

Suppose the Fed announces that is lowering its target, interest rate by 75 basis points, or 0.75 percentage point. To do this, the Fed will use open-market operations to _______ t…

Suppose the Fed announces that it is lowering its target interest rate by 75 bas

Suppose the Fed announces that it is lowering its target interest rate by 75 basis points, or 0.75 percentage point. To do this, the Fed will use open-market operations to _______…

Suppose the Fed buys $50 million of government securities from the Bank of Ameri

Suppose the Fed buys $50 million of government securities from the Bank of America. The Fed's total assets________and its total liabilities_______. increase by $50 million; do not…

Suppose the Fed buys a $100,000 worth of U.S. Treasury bonds from the XYZ Pensio

Suppose the Fed buys a $100,000 worth of U.S. Treasury bonds from the XYZ Pension Fund, a member of the public. It pays XYZ with a check. The check is deposited to XYZ’s checking …

Suppose the Fed carries out an open market purchase and credits the account of a

Suppose the Fed carries out an open market purchase and credits the account of a bank by $160,000. Further suppose that the common reserve ratio (RR) is 15% even though the fed ha…

Suppose the Fed decided to purchase $100 billion worth of government securities

Suppose the Fed decided to purchase $100 billion worth of government securities in the open market which are directly deposited into the banking system. What impact would this act…

Suppose the Fed decided to purchase $100 billion worth of government securities

Suppose the Fed decided to purchase $100 billion worth of government securities in the open market which are directly deposited into the banking system. What impact would this act…

Suppose the Fed increases the U.S. money supply through an open market purchase

Suppose the Fed increases the U.S. money supply through an open market purchase of bonds. What additional effect occurs that would not be felt if the U.S. economy were closed to f…

Suppose the Fed\\\'s primary goal is price stability and it aims to keep the inf

Suppose the Fed's primary goal is price stability and it aims to keep the inflation rate at 2%. If the inflation rate rose above 2%, what should it do? pursue an expansionary mone…

Suppose the Federal Government would like to levy a new specific per unit tax. T

Suppose the Federal Government would like to levy a new specific per unit tax. They need your help as you are a member of the Council of Economic Advisers in trying to figure out …

Suppose the Federal Government would like to levy a new specific per unit tax. T

Suppose the Federal Government would like to levy a new specific per unit tax. They need your help as you are a member of the Council of Economic Advisers in trying to figure out …

Suppose the Federal Government would like to levy a new specific per unit tax. T

Suppose the Federal Government would like to levy a new specific per unit tax. They need your help as you are a member of the Council of Economic Advisers in trying to figure out …

Suppose the Federal Government would like to levy a new specific per unit tax. T

Suppose the Federal Government would like to levy a new specific per unit tax. They need your help as you are a member of the Council of Economic Advisers in trying to figure out …

Suppose the Federal Reserve Bank of Chicago\'s National Activity Index hovered a

Suppose the Federal Reserve Bank of Chicago's National Activity Index hovered around +0.25 for a few months and then dropped to -1.5 in November. Which of the following is the bes…

Suppose the Federal Reserve conducts an open market purchase of $100 million by

Suppose the Federal Reserve conducts an open market purchase of $100 million by purchasing treasury securities from the Bank of Morrisland. Assume that required reserve ratio is 1…

Suppose the Federal Reserve decided to purchase $30 billion worth of govemment s

Suppose the Federal Reserve decided to purchase $30 billion worth of govemment securities in the open market a. By how much will M1 change initially if the entire $30 billion is d…

Suppose the Federal Reserve increases the amount of reserves by $100 million and

Suppose the Federal Reserve increases the amount of reserves by $100 million and the total money supply increases by $500 million. a. What is the money multiplier?       b. Using …

Suppose the Federal Reserve purchases $5 million in government bonds from First

Suppose the Federal Reserve purchases $5 million in government bonds from First Liquidity Bank. Which one of the following statements below is/are true? (Check all that apply) Que…

Suppose the Federal Reserve requires the Bank of Red Sox (the only bank in exist

Suppose the Federal Reserve requires the Bank of Red Sox (the only bank in existence) to hold 10 percent of deposits as reserves. Assume the Bank of Red Sox issues all excess rese…

Suppose the Federal Reserve system has a required reserve ratio of 0.25 and ther

Suppose the Federal Reserve system has a required reserve ratio of 0.25 and there are no excess in the system. If the Open Market Committee buys $10 million of securities from the…

Suppose the Federal Reserve wants to decrease the money supply by $100,000. If t

Suppose the Federal Reserve wants to decrease the money supply by $100,000. If the required reserve ratio is 0.1, how much bonds does it have to sell to achieve its goals? Qn: How…

Suppose the Government decides to enter the Syrian Civil War and as a result inc

Suppose the Government decides to enter the Syrian Civil War and as a result increases military spending. Question 5 As a result of the situation above what will happen to GDP Sel…