The dynamical and nonlocal dielectric function of a two-dimensional electron gas (2DEG) with finite energy bandwidth is computed within random-phase approximation. For large bandwidth, the plasmon dispersion has two separate branches at small and large momenta. The large momenta branch exhibits negative quasi-flat dispersion. The two branches merge with decreasing bandwidth. We discuss how the maximum energy plasmon mode which resides at energies larger than all particle-hole continuum can potentially open a route to low-loss plasmons. Moreover, we discuss the bandwidth effects on the static screening of the charged and magnetic impurities.
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