Answer to Question 1
In equilibrium, the price of capital is determined by the intersection of the supply of capital curve and the demand for capital curve. Similarly, the equilibrium price of natural resources is determined by the intersection of the supply of natural resources curve and the demand for natural resources curve.
Answer to Question 2
If the Fed believes the economy is about to fall into recession, it should conduct expansionary monetary policy, increasing the money supply and reducing interest rates. In implementing expansionary monetary policy, the Fed could lower the discount rate, lower the reserve requirement, and/or have the trading desk purchase U.S. Treasury securities.
Three principle forms of natural selection: (a) stabilizing selection, (b) directional selection, an
Natural Hazards
Oil and Natural Gas Production from More Wells in Smaller Areas
When a Tornado Strikes: Social Organization Following a Natural Disaster
What will be the pH of the solution once equilibrium is established?
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...