# All Questions

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### Macroeconomics- money supply LM model [closed]

why does an increase in money supply , lower the interest rate and shift the LM curve down.?
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### Would a zero-growth economy with zero-growth population still have the same GDP?

If a country was to turn to a steady-state economy (or circular economy) where there is neither economic nor population growth with time, and there is no natural resources being added to the system ...
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### Economic move from agricultural to manufacture to service in ?what after service sector?

is there anything after service sector .in oecd nation most of employment in service sector.is there anything like post service world.
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### How to read nash equilibrium from a normal form?

For example, on the section with the title "sequential games in normal form" of this wikipedia page, there is a table with all its SPNE and nash equilibrium labelled. How are the NEs obtained? It ...
54 views

### How to prove the relationship between the expected value of a lottery and its certainty equivalent?

Utility function $u(x)$ is monotonic. I want to prove that $u(x)$ exhibits risk aversion if and only if for all lottery $F$: $E(x) \geq CE(F,u)$ (CE is certainty equivalent). (Definition of $CE$: the ...
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### Does 0% interest rate mean the minimum value of a currency?

I would like to know if there are other factors that can devalue a currency. I think the effect of the negative interest rates will not be much greater than the 0% interest rate because simply a very ...
54 views

### Consequences of removing hard currency [closed]

If an appropriate electronic system were implemented governments would know how much money there is in circulation, who has it and if some illegal transaction has been done. This measure could help ...
163 views

### Cobb Douglas, Budget Line, Demand function question

use the general form of the Cobb Douglas utility function $U(x,y)= (x^a)(y^b)$ and the budget constraint in the form $B=p_{x}X + p_{y}Y$ to find the demand functions for good x and good y. Is this ...
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### Production technology of $y=2x$

I have a given product $y$ that is produced by the input $x$ in the following relation: $2x=y$. In our example, we are given the unit price of $x$ is $16$. Find the unit cost of $y$. The answer is $8$....
315 views

### The difference between a Nash equilibrium and Bayesian Nash equilibrium [closed]

What is the basic difference between Nash equilibrium and Bayesian equilibrium?
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### why is it always said that a CAD must be financed by borrowing from foreign countries

a current account deficit (CAD) means you have money leaking out of your country and going to ROW (rest of world). i see here (https://www.imf.org/external/region/tlm/rr/pdf/fpp5.pdf) that it can be '...
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### Price discrimination question

For this question the answer is b which is the TR of group 2. If price is the same, my question is why isn't the demand function of group 1 considered? Why is the TR of group 1 omitted?
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### How do people check or trust that central bank is not cheating? [closed]

How people can be sure that somebody, cooperating with central bank (or working in it), is not creating money in digital or paper form for themself, so that nobody else notices it?
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### SMD and Lucas critique

One of the consequences of Lucas' critique is that models must be microfounded. On the other side, Sonnenschein-Mantel-Debreu (SMD) theorem claims that microfoundation doesn't have any repercussion on ...
55 views

### Is truth cheap, and falsehood expensive and volatile? [closed]

Question: In a scenario where data is bought and sold in a double-auction market, will the trading price and volatility of a given piece of data become inversely proportional to its accuracy over ...
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### Here's a question about the solow model [closed]

At first, I was confused by how y keeps increasing after depreciation exceeds savings, then I finally found what was truly bothering me. The fact that when depreciation exceeds savings, capital per ...
23 views

### Inventory based question [closed]

"If a firm produces 1000 shirts (finished products), expecting to keep an inventory of 100 shirts at the end of the year." Here Why a firm keep an inventory of 100 shirts ? What is the need of it? ...
32 views

### Minimum wage divided by cost of living?

Is there some commonly known indicator that is defined as: Minimum wage divided by cost of living? I mean, I could call it that way, but perhaps people already have this indicator with a certain ...
110 views

### why isnt private sector savings defined as $S=Y-T-C-I$?

why isnt private sector savings defined as $S=Y-T-C-I$ ? afterall, savings is the money you have left over after you net off from your income ALL of what you have paid out. $Y, T , C$ And $I$ are the ...
55 views

### A question about a derivation in Gali's Monetary Policy book [closed]

In Chapter 3 of Gali's famous Monetary Policy book, he measures the effects of a monetary policy shock. The interest rate rule is: Then a shock $v_t > 0$ occurs. He proceeds to measure how this ...
23 views

### equality between 2 operations using mean [closed]

why when we do the following operation mean (10 ,20,30)= 20 is different from (mean(10,20)+30)/2=22,5 there are no equality between the 2 operations using mean ? why? thanks a lot in advance for ...
36 views

### How does “Survival of the Fittest” result in Rosetta Stone's economic success?

I would briefly comment that Rosetta Stone has a terrible reputation among language lovers (see sample review about why most people can't learn like they did as a child), and some language lovers ...
437 views

### How inflationary is progressive taxation?

Compared with, say minimum wage increases, how inflationary is progressive taxation?
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### Question on money supply related to new crypto project

Following questions are related to a crypto project I am working on and proper answers are of utmost importance to this concept's development. I unfortunately lack expert knowledge about money supply ...
247 views

### Command and control policy approach graph

I'm unsure why a command and control policy approach to pollution will still have a dead weight loss? What happens with it/ or what does the government do about it if anything?
328 views

### Question on oligopoly.

Consider an oligopoly between two identical firms producing a homogenous good with constant marginal cost where firms face linear market demand. $B_i(q_j)$ denotes firm i’s best response given the ...
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### The difference between making money by profit and by earning it [closed]

Suppose there were no taxes (which only makes things more complicated) and suppose I ask ten people if they want to get money by cleaning up houses for 8 euros per hour. They agree. Now I on my turn ...
4k views

### How do you determine if the production function has decreasing returns to scale?

How do you determine this for the production function $f(k,l) = k^{1.4}l^{0.5}$ ? So far, I have found the marginal product of both labour and capital however, the marginal product of labour is ...
46 views

### What is the maximal theoretically possible wage increase here and now (ceteris paribus)? [closed]

Labour unions are pushing for wage increase but what is maximal theoretically possible wage increase here and now - without restructuring production, processes and without introduction of new ...
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### Budget constraint with leisure and consumption

I am given the following utility function: $u(x_{1}, x_{2})=x_{1}^2x_{2}$ where $x_{1}$ represents leisure and $x_{2}$ represents consumption. I am also given the budget constraint with the price of ...
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### Does the utility function U(X, Y) = 12x^0.2 y^0.8 represent homothetic preferences? [closed]

Does the utility function U(X, Y) = 12x^0.2 y^0.8 represent homothetic preferences? I was given this question but I have no idea how to work it out. I understand what homothetic preferences are in ...
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### Monetization of everything, where does it end?

The newest trend in global finance is elite monetization, meaning monetization of all elite assets such as top corporations and municipalities. Central banks are buying the stocks and bonds of elite ...