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
Welcome sign for Kenton, Tennessee, an example of competition for "White Squirrel Capital"
Natural defenses against stomach acid
How Oil and Natural Gas Form
When operating your own business, it is wise to know your cost of capital and that of the ...
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...