6 problems

Problem #1: Loanable Funds Market Consider the initial condition is one where the government is running a deficit of $100. Now consider what would happen in the market for loanable funds if the government decides to raise net taxes by $150 to eliminate the deficit - and start running a surplus. Draw the market for loanable fu ...continues

CLEP TEST HELP

Dear Sir: I am preparing for the Clep test and I am studying out of a book from the library. However, there are no answers so that I can see if I am on the right track. Can you please assist me witht he following questions? 1. If marginal cost is less than average cost, average cost must fall when more units are produc ...continues

slope of the yield curve

Which of the following would most likely increase the slope of the yield curve? a. An increase in the rate that prices are expected to increase over the next 30 years. b. A decrease in the risk-free interest rate. c. An increase in the risk-free interest rate, where the increase is the same amount for all maturity dates (e.g. ...continues

Questions

Dear Sirs: I am preparing for the CLEP exam in ECON and I stumbled upon these question in a book in the library, but I can not find solutions and I do not understand them. Can you please assist me? Thank you 1. Interferences such as rent controls and farm price supports reduce the efficiency of markets. In terms of the ...continues

College Level Examination Program Study - Economics

I am studying for the CLEP. I found the attached questions on the net, but no answers to go with them. 1. Economics is a social science because it a. rigorously and systematically examines human behavior b. it not as scientific as physics c. uses historical data instead of mathematical data d. uses statistics instead of ...continues

Is the firm maximizing its profit? What quantity of output should the firm produce in the long run?

A firm produces a product in a competitive industry and has a total cost function C = 50 + 4q + 2q(squared) and a marginal cost function MC = 4 + 4q. At the given market price of $20, the firm is producing 5 units of output. Is the firm maximizing its profit? What quantity of output should the firm produce in the long run?

Macro economic concepts regarding economic output, performance, and equilibrium.

I am the class rock. For whatever reason, I find economic concepts hard to grasp. We have a group discussion coming up and I want to make sure that I have some "plain language" help in addition to the stark, sterile reading of the text book... (I even bought an additional textbook to read a different perspective than the one ...continues

Macroeconomics question

I find economic concepts hard to grasp. I have a group discussion coming up and I want to make sure that I have some "plain language" help in addition to the stark, sterile reading of the text book... (I even bought an additional textbook to read a different perspective than the one required in class). Here is what I nee ...continues

Excess Reserves

Given that a bank has 90 in demand deposits and 110 in savings deposits in libilities and 25 in Reserves at the Fed, is this all the information I need for determining the banks excess reserves? The required reserve ratio is 5% on all deposits

Calculating reserves, monetary base, and M2

Given a central bank has gold, foreign exchange, banks' deposits, gov't securities and currency in circulation and the banks had checkable deposits, savings deposits/time deposits, and currency inside the banks which of the above who I use to calculate a Banks' reserves The Monetary Base M2