most developing countries such as South Africa, Zambia, Tanzania, Mozambique, Nigeria etc, are battling to contain inflation at a desirable levels. on the other hand, some developed economies are battling with deflation. using relevant macroeconomic theories to support your arguments:

a) write a detailed review of the challenges posed by deflation within an economy. your answer should cover all sectors including the business, government and the society as well as other macroeconomic indicators ( GDP, unemployment, interest rate etc.) ( 25 marks)

15. If a bank faces a reserve requirement of 8 percent and has a reserve ratio of 12 percent, then
A. government regulation requires the bank to use at least 8 percent of its deposits to make loans.
B. the bank’s ratio of loans to deposits is 8 percent.
C. the bank keeps 8 percent of its deposits as reserves and loans out the rest.
D. the bank keeps 12 percent of its assets as reserves and loans out the rest.
E. the bank keeps 12 percent of its deposits as reserves and loans out the rest.

16. According to the textbook, which of the following statements is (are) correct?
(x) A bank’s reserve ratio is 15 percent and the bank has $5,000 in deposits. Its reserves amount to $750
(y) A bank’s reserve ratio is 7.5 percent and the bank has $2,250 in reserve. Its deposits amount to $30,000
(z) A bank has $348,125 in required reserves and $2,785,000 in deposits. The reserve requirement must be equal to 12.5 percent of deposits
A. (x), (y) and (z) B. (x) and (y), only
C. (x) and (z), only D. (y) and (z), only
E. (x) only

17. Suppose a bank has a 12.5 percent reserve requirement, $100,000 in deposits, and it loans out all it can given the reserve requirement.
A. It has $1,250 in reserves and $97,750 in loans.
B. It has $12,500 in reserves and $87,500 in loans.
C. It has $12,500 in reserves and $100,000 in loans.
D. It has $87,500 in reserves and $12,500 in loans
E. None of the above is correct.

18. The reserve requirement is 10 percent. A customer deposits $2,000 into a bank. By how much do excess reserves change?
A. $2,000
B. $1,800
C. $200
D. $100
E. $0

What impacts did the Fed’s monetary policies have on the monetary markets from 2007-2011? Explain.

Which of the following statements is (are) correct?

Select one:

A. A strong demand increase together with a weaker supply decrease would necessarily result in a higher price and an increase in equilibrium quantity.  

B. A weak demand decrease together with a stronger supply increase would necessarily result in a lower price and an increase in equilibrium quantity.  

C. A weak demand increase together with a stronger supply increase would necessarily result in a lower price and an increase in equilibrium quantity.

D. All of the above

E. A and B, only

Values of quantity supplied and quantity demanded for specific prices in a particular market are listed. The quantity demanded at the price of $28 is 1,000 units. At the price of $26, the quantity demanded is 1,300 units and at the price of $24 the quantity demanded is 1,600 units. The quantity supplied at the price of $28 is 1,500 units. At the price of $26, the quantity supplied is 1,300 units and at the price of $24 the quantity supplied is 1,100 units. (Hint: you may find it helpful to draw the graph). Which of the following statements is (are) correct?

(x)   If the actual market price was $24, then a shortage of 500 units would exist and the price would rise to $26, but not to $28.

(y)   If the actual market price was $28, then a surplus of 500 units would exist and price would fall to $26, but not to $24

(z)   If the actual price was either $28 or $24, then the market would not be in equilibrium and less than 1,300 units would be sold.

Select one:

A. (x), (y) and (z)

B. (x) and (y) only

C. (x) and (z) only

D. (y) and (z) only

E. (z) only

Examine political cartoons published in the early nineteenth century. How accurately did these cartoons reflect society in the early 1800s?

Your business has estimated its total cost to be TC = 3800 + 0.25Q + 0.0018Q2; its marginal cost is thus MC = 0.25 + 0.0036Q, where Q is the amount of pieces provided and TC is in dollars. Because your market is moderately competitive, your business is capable of selling its output for $12.85 each (which therefore produces MR = 12.85 and TR = 12.85Q).

a. Make a table in Excel showing TC and TR with Q on the horizontal axis. Have Q go from 0 to 10,000 units (each row of your Q column can grow by a relatively large number so that your table isn’t large). Create a second table displaying MC and MR with Q again on the horizontal axis.

b. What is the optimal level of output for your business to produce/sell? What is the marginal revenue of the final unit sold?

c. What are the total revenue, total cost, and profit (net benefit/net revenue/etc.) of selling the optimal amount of units?

d. An eager worker at your business hints that, because the business makes $12.85 revenue for each unit sold, then the company could make still more profit by selling more than the level chosen in part b; why would your business not want to make and sell more output than the level you picked in part b?

While technology is a great tool it should not be the absolute answer when it comes to educating our kids. agree or disagree? why?

The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the equivalent value (a) now and (b) for each year hereafter. The system has an installed cost of $2,500,000 and an additional cost of $700,000 at year 8. The annual software maintenance contract cost is $75,000 for the first 4 years, $100,000 for the second 4 years, $125,000 for the third 4 years, and $125,000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $100,000 every 14 years. Assume that i= 7% per year for county funds

1) Why is it possible to change real economic factors in the short run simply by printing and distributing more money?

2) Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1-7% regularly.

3) Explain the difference between active and passive monetary policy.

4. The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes:

a. Bribes made to secure contracts that would otherwise not be secured

b. Grease payments to gain exclusive preferential treatment

c. Facilitating payments to expedite routine government action

d. Payments to government officials for special privileges

5. Certification as a schedule B corporation would likely not involve:

a. A focus on environmental sustainability in the organization

b. Assuring that the needs of external stakeholders are considered when making decisions.

c. Making sure that the company is only focused on shareholder wealth maximization

d. Giving employees a voice in the management of the organization

e. An assurance that the firm has a commitment to corporate social responsibility.

6. If a country having balance of payments problems gets a loan from the IMF, they are likely required to:

a. Give tax cuts to local corporations and wealthy elites

b. Use funds to send money to individual citizens

c. Adopt specific economic policies to achieve stabilization

d. Allow developed nations firms to engage in FDI in their country

e. Raise tariffs against inputs

Suppose Congress decides to increase government spending and taxes by equal amounts. Use the IS-LM AD-SRAS-LRAS model to illustrate graphically the short run impact of the increase in government spending and taxes on output and interest rates, prices, consumption, unemployment rate and investment in short run. Explain clearly which curve would shift and why. What will be the long run impact of this increase in government spending and taxes on output and interest rates, prices, consumption, unemployment rate and investment.
Show the appropriate movement of curves both for the short run and the long run. Be sure to label: i. the axes; ii. the curves; iii. The initial equilibrium values; iv. The direction the curves shift; and v. the short run equilibrium values and vi. The long run equilibrium values.

How can the Fed keep the economy from falling into a recession/boom due to the increase in government spending and taxes? Use a second IS-LM-SRAS-LRAS model to illustrate graphically the impact of both fiscal policy of increase in government spending and taxes and the monetary policy which prevents output from falling/rising. Be sure to label: i. the axes; ii. the curves; iii. The initial equilibrium values; iv. The direction the curves shift; and v. the terminal equilibrium values.

a) Identify the most important source(s) of market power in the following markets and briefly explain your answers:

i. Small town bars with liquor licenses

ii. Apple iPad

iii. Electronic commerce (Amazon)

iv. Brand-name prescription drugs

v. Netflix

b) Calculate the Lerner Index for the following profit maximizing firms:

i. Netflix: price = 10, marginal cost = 4

ii. Shell gasoline: elasticity = 0.6

c) Provide an example cross price elasticity for the following products and briefly justify your answer:

i. The price of Apple iPhone X and the quantity of Samsung Galaxy S10

ii. The price of BP gasoline and the quantity of Ford Expedition SUV’s

iii. The price of Starbuck’s latte’s and the quantity of Nike shoes

Suppose that the pharmaceutical rm Merck is deciding whether to develop a new diagnostic procedure that can detect early-stage Alzheimer's disease more accurately than existing tests. Developing this technology would require an up-front fixed cost FC > 0. If Merck develops the technology, it can screen Q patients for Alzheimer's at the variable cost VC(Q) = 20Q. Merck estimates that market demand for the procedure would be p(Q) = 80 - (1/10)Q

a. Suppose that other companies can quickly copy Merck's procedure as soon as it is developed so that the market for medical tests will become perfectly competitive. If Merck develops the procedure, what are the equilibrium price pc and quantity Qc? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

b. Now suppose that, if Merck develops the procedure, it will receive a patent that allows it to operate as a uniform-pricing monopolist. In this case, if Merck develops the procedure, how many patients will it screen (Qm), and what will it charge (pm)? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

c. Now suppose that, if Merck develops the procedure, it is legally permitted (and able) to engage in perfect price discrimination. If Merck develops the procedure, what are its optimal quantity Qppd , revenue R(Qppd ), and variable costs VC(Qppd )? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

d. Suppose that FC = 5000. Using your answers above, compute consumer surplus, producer surplus, and total surplus under each of the following policies:

i. No patent protecting Merck's innovation (as in part a).

ii. A patent letting Merck operate as a uniform-pricing monopolist (as in b).

iii. Legal permission for Merck to engage in perfect price discrimination (as in c).

(If Merck develops the procedure, make sure to subtract FC from the producer surplus.)

If we are trying to maximize total surplus, which of these policies is best? If we are instead trying to maximize consumer surplus, which policy is best?