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In the profits of the businesses selling fixed assets and raw materials.

Another reasoning could be that people would be willing to take larger loans from commercial banks to cover their increased spending needs. This increased demand for loans drives up interest rates as …

In macroeconomics these kind of (in my opinion annoying) approximations are used every now and then. The author perhaps neglected to mention that he was using an approximation. …

I assume that you ran a linear regression to find the $C(Y)$ function and by negative intercept you mean $C(0)<0$. This does not contradict anything because what you have is an estimate of the $C(Y)$ …

The demand for liquidity is usually defined as $$ L(Y,i) $$ where $Y$ is income and $i$ is the nominal interest rate. In equilibrium this equals the aggregate money supply $M$ which is function of sev …

Have you considered googling the subject? By doing so I have found: https://en.wikipedia.org/wiki/%C2%A3sd £sd (occasionally written Lsd) is the popular name for the pre-decimal currencies once …

Banks and other financial institutions are businesses.

The Royal Swedish Academy of Sciences has decided to award the 1976 Prize in Economic Sciences in Memory of Alfred Nobel to Professor Milton Friedman, University of Chicago, Illinois, USA, for his …

There is $C_t$ the number and $C_t()$ the function. This is already so in your first equation. Your second equation says that the function is constant over $[0,1]$. In which case it is true that $C_t$ …

The next sentence of the question instructs you to ignore the "700 goods and services" and focus only on meat and movie tickets.

Perhaps this means that the demand curve is shifting to the left and hence lowering the competitive price (the price reached at market equilibrium). Yes. Indeed the "law" of demand holds only for a …

The actors of an economy have a liquidity demand function $L(Y,i)$ where $Y$ is the real income in the economy and $i$ is the nominal interest rate. This function shows how much money the actors keep. …

Your book is correct. To quote it Size of economy is measured in terms of value of goods and services. Suppose the Netherlands had its current population of 16 million people but only 14th cent …

Is this definition of a market failure - one where public value exceeds private cost - equivalent to the Pareto-inefficient outcome definition? This is an example of Pareto-inefficiency. The word eq …

Just to make sure we are talking about the same thing, inflation is usually defined as a sustained increase in the price level, which is a composite index created out of goods and services. To your po …