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1. Banks are required by law to keep a fraction of their deposits as ______. 2. When reserves do not pay interest, banks prefer to keep reserves rather than make loans. ______ (True/False) 3. If the reserve ratio is 0.2 and

Question
Suppose that instead of 1,200 workers, Home has 2,400. Find the equilibrium relative price. What can you say about the efficiency of world production and the division of the gains from trade between Home and Foreign in this case?

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Now suppose world relative demand takes the following form: Demand for apples/demand for bananas = price of bananas/price of apples. a. Graph the relative demand curve along with the relative supply curve. b. What is the equilibrium relative price of apples? c.

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Home is as described in problem 1. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in banana production it is 1. a. Graph Foreign’s production possibility frontier.

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Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. a. Graph Home’s production possibility frontier. b. What is the

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Equation says that trade between any two countries is proportional to the product of their GDPs. Does this mean that if the GDP of every country in the world doubled, world trade would quadruple? Tij = A x Yi * Yj /Dij,
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Canada and Australia are (mainly) English-speaking countries with populations that are not too different in size (Canada’s is 60 percent larger). But Canadian trade is twice as large, relative to GDP, as Australia’s. Why should this be the case?

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a. If the market represented in exhibit above is allowed to operate freely, total employment in the market will be b. If a union raises the wage to $4, total employment in the market will be c. The approximate total

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Marginal revenue product is defined as the change in total revenue that results from the employment of an additional unit of a resource. A widget producer wishes to determine how the addition of pounds of rubber will affect its MRP and profits.

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1. Explain how the supply and demand for currencies can be viewed as the foreign determination. 2. Explain how the asset market approach can be used in forecasting the future spot

Subject
business-economics