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1. If the marginal propensity to consume in a municipality is 0.8, what is the value of the simple multiplier? 2. If a new stadium in an ew consumption expenditures is built, what is the impact on the economy based on the multiplier? 3. Suppose the marginal porpensity to import is 0.3, what happenes to the multplier and the impact on economy?
The complete lung-run model for exchange rate determination posits that changes in the nominal interest rate also affect the exchange rate (E). Recall that the complete model combines the QTM, PPP and the Fisher effect. The simple lung-run version..
The Burrito Barn is considering a price reduction on the Firegut Burrito, which currently sells for $5.00. Jim, the owner of Burrito Barn, knows that the price elasticity of the Firegut is roughly equal to -2.3 over the range of prices being consi..
starting salaries of economics majors have a mean of 47000year with a standard deviation of 8000. what is the
some friends of yours have just had a child. thinking ahead and realizing the power of compound interest they are
1. assume the federal reserve board is undertaking anexpansionarymonetary policy. explain the details of how the
Briefly explain whether you agree or disagree with the following statement '' Assets are things of value that people own . Liabilities are debts . Therefore a bank will always consider a checking account deposit to be an asset , and a car loan to ..
Illustrate what are the benefits and drawbacks of dynamic pricing for that particular company.
Serena consumes popsicles (X) and ice cream cones (Y). Her utility function given by U (x,y) = 3xy. The price of a popsicle is $2, and the price of an ice cream cone is $3. Serena has $40 dollars to spend. A.) Set up the Lagrangian for the consum..
Over the past two decades, according to the U.S. balance of payment, the current accounts and the capital account balance tend to move in same direction.
Scientists reveal that consumption of oranges decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that makes orange trees more productive. Illustrate and explain what effect these changes have on the equilibrium price a..
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulate..
What is the difference between the auto industry of the 1950's and today. Has consumer surplus been affected in any way due to the changes in the auto industry structure, and if so, how?
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