Economics Answers

Contrast the policy implications in the classical and keynesian IS-LM model

You are working for coco-cola as marketing head. The company is planning to float a new drink which is white in color. What lessons from the concept of elasticity can you draw while fixing the price for this new drink?

What are the effects of high population density

in an economy investment exceeds private saving by RS 10,000, budget d if any wrong with the data?eficit is RS 6,000 and net exports is RS 4,000. What if any wrong with the data?

The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationship

Qdx = 750 - 25 P + 0.001Y

The supply of product X is positively related to own price of product X and negatively dependent upon W, the price of some input. This relationship is expressed as:

Qsx = 60 + 15 P - 2 W
Given that Y = 40,000 and W = 6, what is the:
1. Equilibrium price? ____________
2. Equilibrium quantity? ____________
Suppose that income increases to 50,000 and W remains constant. What is the new:
3. Equilibrium price? ____________
4. Equilibrium quantity? ____________
Assuming that income remains constant at 50,000 and W increases to 11, what is the new:

5: Equilibrium price? ____________
6. Equilibrium quantity? ____________

what is the inherent risk of fractional reserve banking

If currency held outside banks is $200 billion and M1 is $600 billion, do we know for sure what Checkable Deposits (DD) equal? Why/why not?

Currency held outside banks is $400 billion, DD are $350 billion, traveler's checks (TC) are $2 billion, and money market mutual funds (retail) are $100 billion. What does M1 equal?

A bank currently has $100 million DD, $4 million in reserves, and $8 million in securities. If the r is 10 %, is the bank meeting its legal R? Explain.

A bank's assets are $90 million, and its liabilities are $71 million. Its assets increase by 10 percent, and its liabilities increase by 6 percent. What is
the percentage change in the bank's capital, or net worth?