The most important advantage of discount policy is that the Fed can use it to perform its role as lender of last resort. control the money supply. punish banks that have deficient reserves. precisely control the monetary base.

Q: Problem 5. Show that if ₁ is more risk-averse than ≥2, then A¹ (x) ≥ A¹² (x) where Zi is represented…

A: Risk aversion is the tendency to avoid risk in case of uncertainty.  There are 3 types of investors:…

Q: why would someone rather be a borrower during a period of unexpected rising inflation, and a lender…

A: Inflation is rise in average general price level of goods and service over period of time. if…

Q: In the originate-to-distribute model of banking, banks sell loans soon after they make them and use…

A: An originate-to-distribute (OTD) model of lending refers to an approach when the banks began…

Q: A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city.…

A: A marginal benefit means the maximum amount a consumer is willing to pay for an additional good or…

Q: The (inverse) demand for pickled herring is P=28-Q and supply is P=1313 Q. The market is initially…

A: A deadweight loss refers to a cost to society arising due to the market inefficiency i.e. the supply…

Q: Maximizing which of the following can contribute to sustainable development? O a. none of the…

A: The concept of sustainable development refers to an approach to economic planning that aims to…

Q: 1. Suppose the firm's short run total cost function is TC = 10 + 10q-q² +0.25q³ and marginal cost is…

A:

Q: What is single tax system? Write its merits and demerits

A: Taxation does more than only pay for public goods and services; it also plays a vital part in the…

Q: Checkers plans to open its first “dark store” later this year to support growing demand for its…

A: Concept Introduction The two most used and most common strategies to create competitive advantage…

Q: A graph that shows all the combinations of goods and services that can be produced if all of…

A: A tradeoff is a scenario in which selecting one choice entails giving up something else, usually a…

Q: What is meant by the term “tax morality”? If, for example, your company has a subsidiary in Russia…

A: ▪︎ Tax morality;- Principles relating to the differentiation between right and wrong or good and…

Q: If the following explanation (or expression) is correct, please indicate "True". Or, if the…

A: Exporting basically refers to the process of selling goods and services that is produced in one…

Q: Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the…

A: An equated monthly installment refers to a fixed amount to be paid to a lender by a borrower on a…

Q: C: The Battle for Ritzy Cinema II - this time, it's personnel Patrons at the Ritzy cinema can either…

A:

Q: 3. The wage rate is £10 and the capital rate is £20. If a firm was spending £c, show what…

A: In the study of economics, production functions represents the relationship between the quantity of…

Q: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow…

A: The opportunity cost is the cost of the next best alternative. It can be said that opportunity cost…

Q: Trick and Gear are the only two producers of flying brooms. They colluded together illegally to…

A:

Q: Nash Equilibria Consider the following (normal-form) game. Compute a Nash Equilibrium of this game.…

A: In the given game, Player 1 has 3 different strategies. Let's say L, M, R are strategies of Player…

Q: Aisha is considering how to allocate the next 6 hours of her free time. She could choose between…

A: Utility function : U = 3L + P Wage rate (w)= 25 per hour  Price of pizza (Pp) = 12.50  We know , L +…

Q: In each of the following cases, calculate the values of MPC, MPW, and the spending multiplier. Enter…

A: In macroeconomics, a multiplier is an element of proportionality that computes how much endogenous…

Q: What are the principles of Tax-incidence?

A: Tax incidence refers to the situation when the tax burden is borne by the consumers or the producers…

Q: When a shortage exists in a market, price is above equilibrium O below equilibrium higher than…

A: Introduction  A shortage occurs whenever quantity demanded is greater than quantity supplied at the…

Q: Charging a price to different groups depending on their different demand elasticities is described…

A: Price Discrimination is an act of not charging the same price to every consumer of the product or…

Q: As a basic rule of thumb, business owners should differentiate their products as much as possible…

A: The purpose of product differentiation is to get a competitive advantage or make your product…

Q: A5

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

Q: c. What is Lorenzo's total revenue? d. What is Lorenzo's accounting profit? e. What is Lorenzo's…

A: Q 14.Individual L sells guitars (G).Sale revenue in a year = $851000Wholesale cost = $476000Wages…

Q: 3. What happens to the good-market equilibrium output if the following event oc- curs in the…

A: A good market is said to be in equilibrium when the total demand(D) of goods is equal to the total…

Q: Y = 1million + 56.43*X + error  By how much does the expected value of Y change if X increases by 2…

A: The model exists two variable one is independent variable, and another is dependent variable. The…

Q: Wen is a typical consumer. Wen spent a total of $10 on 10 pomegranates, $36 on 3 shawarmas, and $35…

A: Price relative is defined as the price of a good or a commodity compared to another good. It can be…

Q: What are the strengths and weaknesses when doing business in the United Arab Emirates?

A: In the Middle East, United Arab Emirates is a premier business hub and open market. There are…

Q: GEORGE TOWN: Fresh chicken at wet markets here now cost between RM10.50 and RM12.00 per kg. The…

A: Given,  Chicken in the market cost between RM10.50 and RM 12 per kgPoultry sellers receive their…

Q: Consider the national income model below 0< ac ΟΥ Y-C(Y)-I(i) - Go = 0 kY+L(i) Mso = = 0 ai ƏL < 1;…

A: The IS-LM model is the Keynesian macroeconomic model which states the relationship between market…

Q: Draw a new curve, on the same graph, reflecting what the PPC might look like if new production…

A: The original PPC with bananas on the x-axis and coffee on the y-axis can be plotted as follows:-…

Q: 5. Assume that the price changed from P1 to P2. Compute for the point elasticity and determine the…

A: Price elasticity, also known as the elasticity coefficient, is a word used in economics to describe…

Q: What are the methods of exchange control?

A: Exchange controls are government-imposed prohibitions and restrictions on private transactions in…

Q: the forms of wealth that are subjected to zakat

A: Zakat is an Islamic Financial term that refers to a mandatory obligation on a follower of Islam to…

Q: opic: advantages of target-return price Required: • Please explain the photo attached, thank you!

A: In order to determine the highest cost that a new product may have, target pricing involves…

Q: variable costs is RM150, and the total of monthly fixed costs are RM50,000. (i) Determine the…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: the next 6 hours of her free time. She could choose Aisha is considering how to allo between leisure…

A: Consumer A can allocate her time between leisure (L) and to do house chores. Consumer A has 6 hours…

Q: 1.  In a bank's business operations, at what point does the money supply increase? (Banks create…

A: Disclaimer: - Since you asked multipart question, we are solving only first 3 parts as per…

Q: 1. Suppose the households in a hypothetical economy has the following consumption function C= a +…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Why is per capita gross domestic product (per capita GDP) better than gross domestic product (GDP)…

A: Disclaimer: As per the honour code, I am providing you with the answer to the first question. Kindly…

Q: Discuss the meaning of Zakat, its legitimacy on economic perspective

A: Zakat is a financial term related to Islam that refers to a type of tax that a Muslim person has to…

Q: D. If TB > TA then Type B will get more education, otherwise Type A will definitely get more…

A: Variance is a measure of dispersion which actually takes all the data points in a data set and in…

Q: Topic: Competing in Tight Oligopolies: Pricing Strategies Required: Please explain the photo…

A: The term "tight oligopoly" refers to a market that is dominated by a small number of very big…

Q: Assume that the price changed from P1 to P2. Compute for the mid-point elasticity and determine the…

A: Price elasticity of demand can be defined as the ratio of the percentage change in quantity demanded…

Q: b. Using the table below indicate if the firm has (i) diseconomies of scale (ii) economies of scale…

A: Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Price Qd Qs1 Qs2 $20 0 10 8 $18 1 9 7 $15 2.5 7.5 5.5 $12 4 6 4 $10 5 5 3 $5…

A: An externality is a benefit or expense that an individual experiences as a result of the creation or…

Q: 5. Suppose damages caused by a typhoon reduced output by P600 million. In response, the government…

A: Tax multiplier will be calculated as: Marginal propensity to consume / Marginal propensity to save.…

Q: In a system of 100-percent-reserve banking,     a. banks do not accept deposits.     b. banks do…

A: If the reserve requirements is of 100%  The change in the money supply due to change in the monetary…