Initially, the Republic of Gorgonzola has no commercial banking system. To make trading easier and eliminate the need for barter, the
government directs the central bank of Gorgonzola to put into circulation 5 million identical paper notes, called guilders. The central
bank prints the guilders and distributes them to the people. At this point the Gorgonzolan money supply is 5 million guilders.
In order to keep the money safe, some Gorgonzolan entrepreneurs set up a system of commercial banks. When people need to make
a payment, they can either withdraw their guilders or write a check on their account Checks give the banks permission to transfer
guilders from the account of the person paying by check to the account of the person to whom the check is made out. With a system
of payments based on checks, the paper guilders need never leave the banking system, although they flow from one bank to another
as a depositor of one bank makes a payment to a depositor in another bank. Deposits do not earn interest in this economy.
Let's suppose for now that people prefer bank deposits to cash and so deposit all of their guilders with the commercial banks.
Assume that (1) initially, the Gorgonzolan central bank puts 5,000,000 guilders into circulation and (2) commercial banks desire to hold
reserves of 20 percent of deposits. Assume that the public holds no currency.

Explain the relationship between consumers and producers in economic growth and activity

Table 1. shows the expected demand for the dvd at different suggested donation levels, and they can act as a single-price monopolist if they choose to. thereceipts will be used to fund gstcg supplies for their data collection and conservation work. at the end of each sea turtle nesting season, any excess funds are donated by the gstcg to a local non-profit sea turtle research and rehabilitation facility. table 1 suggested anticipated total marginal profit donation per number of dvd revenue revenue dvd request requests $19.00 0 $15.00 2 $9.50 4 $7.75 10 $3.00 15 $0.00 20 a. complete table 1 by computing the total revenue, marginal revenue, and profit columns. b. the president wants the gstcg to provide videos to generate the most possible donations (total revenue). what price, if any, is the president of the gstcg favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. c. the education outreach committee wants the gstcg to provide videos to the highest possible number of people. what price, if any, is the educational outreach committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. d. the treasurer of the gstcg wants the dvd program to be as efficient as possible so that the marginal revenue equals marginal cost. what price, if any, is the treasurer favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. e. the fundraising committee wants the dvd program to generate as much profit in donations as possible. what price, if any, is the fundraising committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer.

Why is investing in a mutual fund less risky than investing in a particular company’s stock?